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Home -> Finance -> Full Story
Saudi, Kuwait assure uninterrupted oil supplies
Friday, March 21 2003 16:39 Hrs (IST)

New Delhi: Saudi Arabia and Kuwait, which provide about one-third of India's crude imports, have assured uninterrupted supplies through alternative arrangements even if Iraq tried to spread war to neighbouring countries.

"Saudi Arabia will suspend loading from Persian Gulf if Iraq targets oil tankers in the region. Supplies would be made from the Red Sea," industry sources said.

Kuwait, on the other hand, will ply its vessels under US flag with US Air Force and Navy providing cover to the oil tankers.

Of the country's total oil imports of 78.706 million tonnes in 2001-02, 53.429 million tonnes came from the Middle East countries, the largest being from Saudi at Arabia 13.321 million tonnes (6.434 million tonnes by public sector undertakings and 6.887 million tonnes by Reliance Petroleum Ltd).

While Iran accounted for 8.448 million tonnes, Kuwait gave India 11.958 million tonnes. The United Arab Emirates (UAE) supplied 4.967 million tonnes in 2001-02 and the remaining 53.429 million tonnes were imported from Yemen, Qatar, Dubai and Oman.

"There is a possibility of sea-route in the Persian Gulf being closed if Iraq attacked neighbouring countries. But with these alternative plans, India would get its assured quantities of crude," they said.

To minimise the risk, the country was making purchases from countries outside the conflict zone like Malaysia, Nigeria, Egypt, Libya, West Africa and Red Sea, sources said.

PTI





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