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(Top) HPCL Inks Crude Oil Import Deal With Iran

  • Even as the European Union president, Herman Van Rompuy, impressed upon Prime Minister Manmohan Singh to come to the negotiating table, India has gone ahead and firmed up a fresh deal for importing three million tonnes of crude oil from Iran for 2012-13.
  • Notwithstanding the sanctions imposed by the United States and the EU against Iran, India has made it clear that it was in no mood to give up its oil imports from Tehran. State-run Hindustan Petroleum Corporation Limited (HPCL) said it had signed a deal with Iran to import three million tonnes of crude oil, half-a-million tonne less than last year. This will reduce the size of the annual deal to 60,000 barrels a day in 2012-13 instead of 70,000 barrels a day earlier, according to Director (Refineries), K. Murali.
  • Mr. Murali said Iran had offered terms similar to last year and kept the credit period at 90 days.
  • Recently, India and Iran had struck a deal on the oil payment front with parts of annual payments to be made in rupee form. HPCL operates a 1.66 lakh barrels a day Vizag refinery and 1.30 lakh barrels a day refinery in Mumbai.
  • MRPL may follow suit
  • The Mangalore Refinery and Petrochemicals Limited (MRPL), the biggest importer of crude oil from Iran, is also likely to go ahead with signing of new deals for importing oil.
  • Petroleum and Natural Gas Minister Jaipal Reddy had made it clear that India was not bound by the sanctions by individual countries or blocs and would only abide by international sanctions that had mandate from the United Nations.
  • He had also made it clear that there was no move to restrict imports from Iran although India would also look for alternatives to route future supplies. In fact, smelling an opportunity, a high-level trade delegation will be visiting Iran by the end of this month to work out new potential areas of exports.

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