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A logo of Indian Oil is picture outside a fuel station in New Delhi, India August 29, 2016. Rising crude oil prices in the international market could push petrol and diesel prices up in India, and consequently inflation.Reuters file

India's biggest refiner Indian Oil Corp Ltd said on Wednesday that Iran has not ruled out participating in a refinery expansion project at an Indian Oil subsidiary.

Indian Oil's chairman Sanjiv Singh said that Iran had not said no to participating in the expansion of Chennai Petroleum Corp Ltd, a south India-based 20,000 barrels per day refinery.

Iran's participation has been questioned after India cut down its Iranian crude oil imports following US sanctions.

Chennai Petroleum plans to invest over $5 billion for modernisation and expansion.

Naftiran Intertrade, the Swiss subsidiary of National Iranian Oil Company, holds a 15.4 per cent stake in Chennai Petroleum, while Indian Oil has about a 52 per cent share.

Singh said a detailed feasibility report for the expansion has yet to be prepared.