HPCL to Buy Ira­nian Oil in Jan Af­ter Six-Month Gap

Iran News - - WORLD NEWS -

NEW DELHI (Dis­patches) - State-run In­dian oil re­finer Hin­dus­tan Petroleum Corp will buy Ira­nian crude in Jan­uary af­ter a gap of six months, with the na­tion’s over­all pur­chases from Tehran at 9 mil­lion bar­rels in the month, four in­dus­try sources said.

The United States in early Novem­ber granted In­dia a six-month waiver from sanc­tions against Iran’s oil ex­ports.

Un­der the agree­ment, New Delhi must re­strict its Iran oil pur­chases to 1.25 mil­lion tons, or 9 mil­lion bar­rels.

As part of the deal, HPCL will lift 1 mil­lion bar­rels of Ira­nian crude oil in Jan­uary, one source with knowl­edge of the mat­ter said, ask­ing not to be named due to the po­lit­i­cal sen­si­tiv­ity of Iran sanc­tions.

It was un­clear whether HPCL would con­tinue to buy Ira­nian oil on a reg­u­lar ba­sis dur­ing the waiver pe­riod.

HPCL had halted Ira­nian oil pur­chases in July af­ter its in­sur­ance com­pany re­fused to pro­vide cov­er­age for the crude be­cause of U.S. sanc­tions, al­though its chair­man said last month that HPCL may re­sume buy­ing Ira­nian oil un­der sanc­tions waivers.

In­dian Oil Corp , the coun­try’s top re­finer, will lift 5 mil­lion bar­rels of Ira­nian oil in Jan­uary com­pared to 6 mil­lion this month, while Man­ga­lore Petro­chem­i­cals Ltd will buy 3 mil­lion bar­rels, an­other source said, also ask­ing not to be iden­ti­fied. An IOC of­fi­cial had pre­vi­ously said his firm would lift 180,000 bpd - the full vol­ume con­tracted un­der an an­nual deal with Iran for this fis­cal year end­ing March 31, 2019.

Some of In­dia’s oil im­ports from Iran will be paid for in ru­pee un­der a pay­ment mech­a­nism with In­dian state-owned UCO Bank HPCL, IOC and MRPL did not im­me­di­ately re­spond to re­quests for com­ment.

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