Indian Oil Corporation (IOC) signed yesterday a Memorandum of Understanding with Saudi Aramco as part of the country's plan for long-term oil contracts with the Kingdom of Saudi Arabia. Abdullah S. Al-Saif, Saudi Aramco's senior vice president of Exploration and Production, said the MOU, signed in the presence of both countries' petroleum ministers, was "a milestone in the steadily developing energy relationship between Saudi Arabia and India." Al-Saif added: "India is a very important country for us, and we usually complement such close relationships by going beyond the supply of crude oil and entering into downstream partnerships. We look forward to achieving such a goal with India." The accord calls for cooperation in such areas as production of cleaner fuels, refinery process improvements, corrosion control and biomediation. Azar Khan, first secretary (Commercial) at the Indian Embassy, said the MOU did not relate to oil imports. However, it identified seven areas of cooperation, including R & D (Research and Development). He said India imported $4.7 billion worth of Saudi oil - 26 percent of its oil needs - in 2003. He spoke to Arab News after India's Minister of Petroleum and Natural Gas Mani Shankar Aiyar and his delegation returned from a visit to the Eastern Province where they visited the Saudi Aramco facilities, including the Shayba oil field, to identify investment opportunities. Aiyar and Saudi Minister of Petroleum and Mineral Resources Ali Al-Naimi attended the signing ceremony in Dhahran. Abdulrahman F. Al-Wuhaib, vice president of Engineering Services, signed the memorandum on behalf of Saudi Aramco while N.K. Nayyar, director of Planning & Business Development, signed for IOC. --MORE 1150 Local Time 0850 GMT
