India cuts oil imports from Iran by 19 pct
India's oil imports from Iran fell about 19 percent in the first
half of 2012-2013 to about 257,000 barrels per day (bpd), even
lower than planned, data available to Reuters show, potentially
helping New Delhi win a renewal of a waiver from US sanctions.
The United States and Europe have imposed tough sanctions on Iran
to choke off Tehran's oil revenues in a bid to halt its nuclear
programme. The West says the programme is aimed at building atomic
weapons, a claim Iran denies.
India, Iran's second-biggest client after China, got a 180-day
waiver from the US sanctions in June and has said it aims to cut
annual imports by another 15 per cent to 310,000 bpd in the
contract year that began on April 1, 2012.
The United States has already renewed a waiver for Japan, after
Tokyo again reduced purchases from Iran, allowing its banks a
second reprieve from the threat of being cut off from the US
financial system under the sanctions.
Volumes imported from Iran were up from a month ago and over last
September, however, as one-off factors came into play.
India shipped in 53 per cent more oil from Iran in September
compared with August at about 294,400 bpd. That was more than
double the 131,400 bpd of a year ago, the data show.
Last September's imports were unusually low because Essar Oil's
Vadinar refinery was fully shut for an upgrade.
The monthly jump came as MRPL, a key Indian client of Iran, picked
up imports again in September after a gap of two months because of
shipping issues, and HPCL-Mittal Energy Ltd, part owned by steel
tycoon LN Mittal, bought for the first time.
India, the world's fourth-largest oil importer, is trying to
diversify its crude slate and wants to gradually reduce dependence
on Iran.
Iran had already slipped to third place among India's oil suppliers
in 2011/12, replaced by Iraq and ceding a position it had held for
five years, as the sanctions bit into its exports. Saudi Arabia is
India's biggest supplier.
Overall, Asia's third-largest economy shipped in nearly 34 per cent
more oil in September over a year ago, at 3.8 million bpd, while
imports in the January-September period rose 11 percent to 3.54
million bpd as refining capacity increased.
To replace Iranian volumes, India imported about 58 per cent more
oil from Latin America in the January-September period, with the
region accounting for about 14 per cent of overall imports, up from
10 per cent a year ago.
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