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Indian Oil Corporation

Indian Oil Corporation

Industry: 
Energy
Symbol: 
BOM:530965
Country: 
India
Contact Information: 
Sources: 

"India's oil imports from Iran more than doubled in January from a month earlier, with one state refiner returning from a three-month break as a buyer after sanctions on Tehran were eased due to the interim deal on its nuclear programme…State-run Indian Oil Corp, the country's biggest refiner took Iranian oil in January after not getting oil from Tehran the previous three months, shipping in about 3 million barrels, the data showed.” (Reuters, “India doubles Iran oil imports in Jan from Dec -trade,” 2/21/14)

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"Indian Oil Corp. (IOCL) and two other state-run refiners said they will defer resuming purchases of Iranian crude by at least three months, having failed to get reinsurance for shipments after Europe said it would relax a coverage ban. Indian Oil, which has an accord to buy 24,000 barrels a day from Iran in the year ending March 31, halted purchases after importing in the first quarter of the fiscal year. The nation’s biggest refiner won’t resume buying until insurance is available, said a person with direct knowledge of the matter, asking not to be identified before an announcement…Curbed shipments from Iran may hamper plans by Indian refiners to benefit from lower prices and freight costs. The South Asian nation planned to buy 11 million tons of Iranian crude this fiscal year after the European Union eased its sanction on insuring cargoes following a six-month accord between the Persian Gulf state, the U.S. and five other nations.’The benefit of the Iran deal is not percolating down,’ Basu said in an interview in New Delhi. ‘Our insurers are saying foreign reinsurers want to observe the situation for six months before extending any cover.’ European rules have yet to be rewritten, so reinsurers are still unable to provide cover to Indian refineries that purchase cargoes from the Persian Gulf state, Andrew Bardot, executive officer at the International Group of P&I Clubs, said.” (Bloomberg, “India Refiners Delay Iran Imports on Failure to Get Reinsurance,” 1/7/14)

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"Indian refiners have asked the government to clarify if they can pay Iran for crude in euros after the National Iranian Oil Company (NIOC) requested settlement of some debts through a Turkish bank, Indian officials said on Wednesday…India now owes Iran about $5.3 billion for oil imports, government and refining sources said last week. In mid-October, NIOC informed Indian refiners that Halkbank was ready to restart channelling the payments to Iran, the sources told Reuters, declining to be named due to the sensitivity of the matter. NIOC said it had been informed that Halkbank could be used again by Iran's central bank. It was unclear from the communication from NIOC what had changed that would allow the payments to restart without contravening U.S. sanctions, the sources said…Indian refiners have yet to restart payments via Halkbank and have asked the government for guidance, the sources said…Indian refiners Essar Oil, Mangalore Refinery and Petrochemicals Ltd, Hindustan Petroleum and Indian Oil Corp have all bought crude from Iran and owe payment, sources said." (Reuters, "Indian refiners puzzle over Iran request for euro oil payment-sources," 11/13/13)

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"Iran is offering free delivery of crude to major client India, industry sources said, signalling that tough Western sanctions which have slashed its exports in half are driving Tehran to increasingly desperate measures to keep oil flowing…Iran's remaining Indian clients - Mangalore Refinery and Petrochemicals Ltd, Essar Oil and Indian Oil Corp - could save freight of 70 cents to $1 a barrel on purchases from Iran, said one of the sources…India is one of Iran's few remaining clients along with other Asian buyers China, Japan and South Korea. (Reuters, "Iran offers to ship crude to India for free to boost sales," 11/7/13)

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"India's imports of Iranian oil have fallen to 194,000 barrels per day (bpd) for January-September, down from 324,000 bpd in the same period last year, trade data made available to Reuters shows. September barrels from Iran rose to 296,100 bpd from 151,000 bpd in August, partly due to Indian Oil Corp (IOC.NS) taking 2 million barrels of oil from Tehran, the data showed." (Reuters, "India's Iran oil imports drop as refiners await insurance fund," 10/29/13)

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"India aims to cut Iranian crude imports by 15 percent this fiscal year, the oil secretary said on Tuesday, differing from the oil minister who recently said he wanted to hold the shipments at last year's levels. Ahead of Prime Minister Manmohan Singh's visit to the United States last week, Oil Minister M. Veerappa Moily said Iranian imports should be held steady at 260,000 barrels per day (bpd) to save as much as $8.5 billion in foreign exchange as Tehran accepts partial payment in rupees. However, Oil Secretary Vivek Rae, the Petroleum Ministry's top bureaucrat, said on Tuesday that India targets oil imports of around 220,000 bpd from Iran in the year through March 2014…Three other refiners - Hindustan Petroleum, Bharat Petroleum and Indian Oil Corp - can each import about 1 million to 1.5 million tonnes for the year, or about 20,000 bpd." (Reuters, "India aims to cut Iran oil imports by 15 pct - oil secretary," 10/1/13)
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"Indian Oil Corp, the country's biggest refiner, aims to import 23.4 percent less oil from sanctions-hit Iran in the fiscal year to March 2014 compared with a year earlier, Indian oil minister M. Veerappa Moily said on Tuesday . . . IOC imported 31,320 bpd or 1.566 million tonnes in the fiscal year ending March 31, and entered into a term deal with Tehran to buy 24,000 bpd in this fiscal year, Moily told lawmakers in a written reply. He said IOC imported about half of the contracted volumes in April-June costing $429 million. IOC's imports from Iran in the last fiscal year ended March were valued at $1.26 billion, of which $653 million were paid in rupees and $415 million were settled in euros, he said . . . OC has to pay $194.31 million for Iranian oil purchases made in 2012/13 and about $236 for 2013/14, the minister said." (Reuters, "India's IOC aims to cut oil imports from Iran by 23.4 pct in 2013/14-Minister," 8/6/13)  

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"That has left the country's biggest refiner, state-owned Indian Oil Corp - whose insurance coverage is due for renewal only in November - and private refiner Essar Oil as Iran's only Indian clients, according to sources. The data showed IOC bought two very large crude carriers of Iranian oil in May, and industry and government sources said the state refiner is not planning to lift any more Iranian crude until the fourth quarter of 2013." (Reuters, "India cuts Iran oil imports 42 pct, takes Venezuelan, other crudes," 6/17/2013) 

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"Iran has offered the first such pact globally since the 1979 revolution that overthrew the monarchy in Iran to an Indian consortium comprising ONGC Videsh Ltd (OVL), Indian Oil Corp. Ltd(IOC) and Oil India Ltd (OIL), which won a bid for the block in 2002 from National Iranian Oil Co." (The Wall Street Journal, "Indian firms to ink production-sharing contract with Iran," 6/16/2013) 

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"India's oil imports from Iran fell by more than 40 percent in July from June and a year ago, as imports by Tehran's biggest local client MRPL were hit by a shortage of ships and insurance cover caused by European Union sanctions . . . HPCL aims to buy 60,000 bpd oil from Iran -- 40,000 firm and 20,000 optional, compared with 70,000 bpd in 2011/12, and Indian Oil Corp, the country's biggest refiner, plans to lift 30,000 bpd compared with 42,000 bpd a year ago." (Reuters, "India cuts July Iran oil imports by over 40 pct y/y-trade data," 8/21/12)

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"India's biggest buyer of Iranian oil, MRPL, has bought Azeri, Saudi and Emirati crude to replace imports from Iran in July and it may halt purchases from Tehran altogether as sanctions make shipments more difficult,industry sources said on Monday. . . Indian Oil Corp., the country's biggest oil refiner, has been lifting 20,000 bpd of Azeri Light crude in 2012 under an annual contract while Hindustan Petroleum will soon start buying 10,000 bpd from Azerbaijan's national oil company SOCAR." (Reuters, "India's top buyer of Iran oil turns to Azeri, Saudi," 7/16/12)

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"Indian refiners cut imports from Iran by 38 percent in May from a year ago, tanker discharge data showed, in a second month of steep reductions as they switch suppliers to cushion the impact of new U.S. sanctions on Tehran . . . Indian Oil Corp, the country's biggest refiner, bought 67,600 bpd oil from Iran [in 2011/12]." (Reuters, "India cuts May Iran oil imports 38 pct-trade," 6/7/12)

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“Indian Oil Corp stepped up imports to 85,000 bpd from just 11,000 bpd in the same quarter of 2011, it showed” (Reuters, India replaces China as Iran's top oil client,” 4/13/2012)

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"India's biggest oil refiner said Thursday it did not expect any supply shortages because of a payments problem between India and Iran, but other refiners are making contingencies in case of disruption.

In December, India's central bank said payments to Iran -- India's second biggest supplier of crude -- could no longer be settled through a long-standing clearing house system because of sanctions. The abrupt move to block the Asian Clearing Union (ACU) mechanism, which was run by the central banks of India and other south Asian countries, left Indian oil companies without a way to pay for their supplies.

A temporary arrangement has been found using the State Bank of India and the European-Iranian Trade Bank, or EIH Bank, but both countries are seeking a long-term solution. Asked about possible problems, S.V. Narasimhan, the finance director of IndianOil, the largest refiner in India, said Thursday: 'We don't anticipate any disturbances.'" (AFP, "Indian oil giant optimistic over Iran supply," 1/6/11)

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Firm/country: Indian Oil Corporation/India;

Firm activity: Development of Farzad-B natural gas field in the Farsi block;

Status: Part of consortium that is exploring the Farsi block and that submitted a 2009 plan to develop the gas field over a 7-to 8-year period;

Commercial activity: 40% stake in the project, with an estimated total investment of $5 billion;

Firm comment: Contacted on February 19, 2010; no response as of March 22, 2010

(GAO report 2010 - "Firms Reported in Open Sources as Having Commercial Activity in Iran’s Oil, Gas, and Petrochemical Sectors")

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"Oil and Natural Gas Corp. Ltd’s (ONGC) overseas arm ONGC Videsh Ltd, or OVL, which won the bid in 2002, is the operator of the Farsi block with a 40% stake in the block. Indian Oil Corp. Ltd (IOC) and Oil India Ltd (OIL) have 40% and 20% stakes, respectively.  The consortium submitted a feasibility report to National Iranian Oil Co. (NIOC) in November 2008. NIOC then accepted the commercial viability of natural gas production at Farsi block." (Live Mint, "Eight years on, Farsi block development plan yet to be finalized," 4/21/2010)

 

 

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