IOC, which was the largest Indian purchaser of Iranian oil in 2018/19, has not signed an annual contract to purchase oil from Iran this fiscal yr.
Saudi Arabia approached Indian patrons final month providing them extra provides to compensate for misplaced Iranian oil after US sanctions kicked in. The US, which imposed new sanctions on Iran in November, initially gave Indian and 7 different patrons a six-month waiver to permit them to proceed importing Iranian oil. These waivers haven’t been renewed.
IOC has a time period deal to purchase 5.6 million tonnes from Saudi Aramco within the monetary yr 2019/20 that began on April 1 and an choice to purchase extra 2 million tonnes. “We have told them we will be taking 2 million barrels every month for six months from July (about 1.6 million tonnes in total) and they have agreed,” stated AK Sharma, IOC finance director.
Saudi Aramco will provide state-run Indian Oil Corp Ltd (IOC) an additional 2 million barrels of crude a month from July to December, an IOC government stated on Friday, as New Delhi seeks to make up for a loss in provides from Iran.
In 2012, when Iran was beneath a earlier spherical of sanctions, Saudi Arabia and Iraq raised their Asian market share. Since then, commerce has shifted as US and different crude provides have come to the market.
India, Iran’s prime shopper after China, has shut diplomatic ties with Iran however desires to work intently with the US.
India had purchased about 300,000 barrels per day (bpd) of Iranian oil beneath the six-month US sanctions waiver.
IOC, which was the largest Indian purchaser of Iranian oil in 2018/19, has not signed an annual contract to purchase oil from Iran this fiscal yr. IOC has been diversifying its suppliers.
Solely state refiners, accounting for about 60 per cent of India’s 5 million bpd refining capability, bought oil from Iran since November. India imported about 304,500 bpd Iranian oil between January and April 2019.
“We have requested Saudi Arabia for additional oil. We have optional contracts with ADNOC, Kuwait and Mexico. We will ask them also for extra supplies if required,” Mr Sharma stated.
IOC has signed separate annual contracts with Norway’s Equinor and Algeria’s Sonatrach to purchase 4.6 million tonnes of US oil in 2019, he stated.