Bangalore: Union Petroleum and Natural Gas Minister Ram Naik is visiting Iraq from July 5 to finalise a deal on exploration of oil and gas there and also on buying oil from the Middle East country.

"We are discussing about some blocks (for exploration of oil and gas), and also purchase of oil subject to UN sanctions," Naik told reporters. "We will discuss and finalise".

He noted that India and Iraq had formed a joint commission, which held meetings in each other's country once in two years. Last time, the meeting was held in India. Naik is the joint chairman of the commission, along with Iraq's Petroleum minister.

Naik said he would be accompanied by a trade delegation and the two sides would hold discussions pertaining to areas including textiles and information technology besides educational and cultural relations.

The minister said besides Iraq, India is discussing with Iran, Malaysia and Kazakhstan for taking "some important gas fields" for exploration of oil and gas.

Asked why Asian countries are paying a "premium" for import of crude, Naik said, "It's not a premium".

"We are paying a high price. Developed countries don't feel that the price is high", he said, adding, he has been taking up this issue at the international fora and stressing that developing countries should be given some kind of concession.

According to him, while Organisation of the Petroleum Exporting Countries (OPEC) has said there is substance in the argument, it has said it cannot do it as a whole but individual countries can have such arrangements on a country-to-country basis. He would again take up the issue at World Petroleum Conference in Brazil in September.

PTI