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INDIA ALLOWS IRANIAN OIL IMPORTS WITH TEHRAN-ARRANGED SHIPPING
PanARMENIAN.Net
June 25, 2012 - 17:51 AMT
PanARMENIAN.Net - India has allowed state refiners to import Iranian
oil, with Tehran arranging shipping and insurance, from July 1,
keeping purchases of over 200,000 barrels per day (bpd) flowing
after European sanctions hit insurance for the cargoes, government
and industry sources said, according to Reuters.
India, one of Iran's biggest crude buyers, has just secured a waiver
from U.S. sanctions which target Tehran's nuclear ambitions by cutting
imports over 20 percent.
But European sanctions that come into effect from July 1 ban insurers
and reinsurers from covering shipments of Iranian oil, leaving buyers
in Asia - Iran's biggest market - struggling for cover.
Around 90 percent of the world's tanker fleet is covered by
Western-based protection and indemnity (P&I) clubs, which insure
against personal injury and environmental clean-up claims.
Among other Asian buyers of Iran oil, Japan will provide sovereign
guarantees for Iranian shipments, China has asked Iran to deliver
the crude while South Korea will halt imports from July.
"Yes, we have allowed them to buy oil from Iran on CIF (Cost, Insurance
and Freight) basis," said a senior shipping ministry official.
Unlike private refiners, India's state-run companies need government
permission to import oil on a CIF basis as federal policy requires
them to favor Indian insurers and shippers by buying only on a Free
on Board (FOB) basis.
India aims to buy 310,000 bpd of oil from Iran under contracts during
the fiscal year from April to March, which includes 100,000 bpd of
purchases by Essar Oil, the only private customer.
The United States earlier this month extended exemptions from its
tough, new sanctions on Iran's oil trade to seven more economies
including India but China remains vulnerable.
Indian state insurers led by General Insurance Corp (GIC) had agreed
to provide $50 million of cover for the ships carrying Iran crude
from July but this has been delayed as the insurance regulator has
not yet given its approval.
From: Emil Lazarian | Ararat NewsPress
PanARMENIAN.Net
June 25, 2012 - 17:51 AMT
PanARMENIAN.Net - India has allowed state refiners to import Iranian
oil, with Tehran arranging shipping and insurance, from July 1,
keeping purchases of over 200,000 barrels per day (bpd) flowing
after European sanctions hit insurance for the cargoes, government
and industry sources said, according to Reuters.
India, one of Iran's biggest crude buyers, has just secured a waiver
from U.S. sanctions which target Tehran's nuclear ambitions by cutting
imports over 20 percent.
But European sanctions that come into effect from July 1 ban insurers
and reinsurers from covering shipments of Iranian oil, leaving buyers
in Asia - Iran's biggest market - struggling for cover.
Around 90 percent of the world's tanker fleet is covered by
Western-based protection and indemnity (P&I) clubs, which insure
against personal injury and environmental clean-up claims.
Among other Asian buyers of Iran oil, Japan will provide sovereign
guarantees for Iranian shipments, China has asked Iran to deliver
the crude while South Korea will halt imports from July.
"Yes, we have allowed them to buy oil from Iran on CIF (Cost, Insurance
and Freight) basis," said a senior shipping ministry official.
Unlike private refiners, India's state-run companies need government
permission to import oil on a CIF basis as federal policy requires
them to favor Indian insurers and shippers by buying only on a Free
on Board (FOB) basis.
India aims to buy 310,000 bpd of oil from Iran under contracts during
the fiscal year from April to March, which includes 100,000 bpd of
purchases by Essar Oil, the only private customer.
The United States earlier this month extended exemptions from its
tough, new sanctions on Iran's oil trade to seven more economies
including India but China remains vulnerable.
Indian state insurers led by General Insurance Corp (GIC) had agreed
to provide $50 million of cover for the ships carrying Iran crude
from July but this has been delayed as the insurance regulator has
not yet given its approval.
From: Emil Lazarian | Ararat NewsPress