NEW DELHI, Aug 8: Iraq has offered to sell three million tons of oil to India in the current financial year ending March 2004 and the deal is likely to be finalized by this month, Press Trust of India reported.

“Iraq’s State Oil Marketing Organization has offered us three million tons of Basra Light crude oil during October to March. We expect to sign the deal later this month,” state-run Indian Oil Corp’s director P. Sugavanam said.

Senior Indian Oil Corp officials will be visiting Baghdad in the third week of August to conclude the deal.

“We have already received the draft contract for supply of three million ton crude. Our team will visit Baghdad shortly and sign the contract,” he said.

India had been importing millions of tons of oil from Iraq under the UN oil-for-food programme, but this stopped in the days before the US war against Iraq.

India imports about 70 per cent of its oil needs, with a major portion coming from the Middle East.—AFP