India will ask the Organization of Petroleum Exporting Countries (OPEC) to extend credit facilities and discount rates to developing countries, Oil Minister Ram Naik said Saturday.
"We are in the process of finalizing a proposal and will send it to OPEC next week," Naik told reporters on the sidelines of the fifth international conference on petroleum geochemistry and exploration in the Afro-Asian Region here.
"We are seeking a three month credit instead of spot payment," Naik said adding that he had met representatives of eight of the 11 OPEC members in Riyadh recently to seek relief for developing nations.
"OPEC members were veering round to the idea of a price band of 24-28 dollar for a barrel of crude. I do not think that the prices of crude will go up further from the present level," he said.
Naik said spiraling global oil prices had badly hit developing nations.
"(The) very high level of oil prices prevailing in the world market has created tremendous pressure on economies of developing nations ... India's oil import bill at 17.5 billion dollars will put tremendous pressure on foreign exchange reserves," he said.
The minister said India's annual oil consumption was about 100 million tons of crude, while local production was "static at around 32 million tons for the past few years."
India has an estimated hydrocarbon resource base of 28 billion tons out of which only 6.8 billion tons have been discovered so far, he said -- NEW DELHI (AFP)
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