Tuesday, May 31 2005 19:18 Hrs (IST) - World Time -

New Delhi: After getting lead oil producers from Gulf to forge alliance with major Asian consumers, India will, in October, host a meeting of the Central Asian oil producers with four largest consumers in Asia towards forming an 'Asian Oil Community'.

"In the week beginning October 17, we propose to host the oil Ministers from Russia, Kazakhstan, Turkmenistan, Uzbekistan and Azerbaijan to a meeting with four prime Asian buyers - the Chinese, Japanese, Korean and of course Indian," Petroleum Minister Mani Shankar Aiyar said today (May 31, 2005).

On January 6 this year (2005), Aiyar had staged a coup of sorts when he got kingpin oil producers Saudi Arabia, Iran, Kuwait, UAE, Oman and Qatar together with prime consumers India, China, Japan and Korea to give shape to a new regional forum that vowed to strengthen energy ties for ensuring stable energy supplies at reasonable prices.

Now he wants the Caspian Sea producers to come on board the pan-Asia community. "We are creating brotherhood in the Asian oil economies."

Like the January 6 meeting, on agenda would set up of an Asian oil market by evolving a marker crude that is produced and traded in the region as opposed to the current practice of oil being sold to Asians at a discount or premium to the benchmark price of North American or European market.

Officials said Aiyar believed that Asian economies account for nearly half of the world's oil and therefore should have their own market, which understands the needs of the producers and paying capacity of consumers.

The October meeting would also focus on building energy security through joint investments - consumers making upstream investments in producing countries and suppliers making downstream investments in refining and gas in the consuming nations.

Aiyar said he had received in-principle approval for the meeting from Russia, Kazakhstan and Turkmenistan. He would extend a formal invitation to the Azerbaijan oil Minister when he meets him in Baaku next week.

The meeting would also be attended by representatives of from China, Japan and Korea.