|Iran hopes to increase sale of crude oil to India, bypass Western curbs||
Iran wants to increase the sale of crude oil to India, and is expected to suggest ways to work around western sanctions as officials from two countries met in New Delhi on Friday.
Indian oil industry expects to import less than 14 million tons of Iranian crude oil in 2012-13, which is below the official estimates of 15.5 million tons because of the U.S. and European sanction against the Islamic Republic.
"Crude oil import is one of the major issues to be discussed in the meeting with Iranian delegates on Friday," a government official said requesting anonymity. India imported 21.8 million tons of Iranian oil in 2008-09, but has been forced to reduce the quantity after it faced difficulties in making payments in dollars and Western insurers denied insurance cover to shipments, the official said.
The biggest Indian importer of Iranian crude, Mangalore Refinery & Petrochemicals Ltd (MRPL), has faced disruptions in importing contracted quantities since July this year because of the U.S. and European Union sanctions.
Minister of State for Oil & Natural Gas RPN Singh told the parliament in May that the government had substantially reduced oil imports from Iran. "In order to reduce its dependence on any particular region of the world, India has been consciously trying to diversify its sources of crude oil imports to strengthen the country's energy security," Singh said.
A gradual reduction in Iranian crude purchase helped India to get a waiver from the US sanctions, industry officials said.
Indian refiners could import crude oil from Iran in early July though Iranian vessels on CIF (cost, insurance and freight) basis after European insurers stopped insurance cover to Indian shippers.
(Source: The Economic Times)
Subscribe to our RSS feed to stay in touch and receive all of TT updates right in your feed reader