Iran is planning to increase the volume of oil exports to India to 400,000 barrels a day, from the current 350,000 b/d, by the end of 2016, said Oil Minister Bijan Zanganeh, after meeting Indian counterpart Dharmendra Pradhan on 9 April.

Zanganeh, who has served as oil minister since 15 August 2013 in the cabinet led by Hassan Rouhani, was quoted by Iran’s Shana news agency as saying Indian oil purchases from Iran were currently at a level of 350,000 barrels a day, and that “we hope this number will increase now that sanctions have been lifted”.

According to Shana, Pradhan said India was ready to invest $20bn in the Chabahar Port in southeastern Iran, adding that “Iran and India’s energy ties are no longer limited to crude oil imports”.

At the end of February, Prime Minister of India Narendra Modi chaired a cabinet meeting that confirmed the provision and operationalisation of a $150m credit line for developing Iran’s Chabahar Port.

The development of the port is intended to grow India’s maritime trade in the region.

According to a memorandum of understanding (MoU) signed in May last year between Nitin Gadkari, India’s minister for shipping, road transport and highways and his Iranian counterpart, India will prepare and control two berths in Chabahar Port Phase-I, with investment of $85.2m and annual revenue expenditure of $22.95m on a 10-year lease.

Whilst Zanganeh and Pradhan signed a cooperation agreement covering development of Farzad B Gas Field, refinery collaboration, export of Iran’s crude oil and petroleum products to India as well as cooperation in petrochemical sector.