India’s Mangalore Refinery and Petrochemicals Ltd plans to resume Iranian oil imports from August, after stopping for four months, because it has found no suitable alternatives, an industry source with knowledge of the matter said.
Resumption of shipments by MRPL, Iran’s top Indian client until it stopped purchases in April, will help to revive the country’s Iranian oil imports. India’s intake of Iranian crude fell by 40% in the April-June quarter, as refiner Essar Oil became Iran’s lone Indian client.
Hindustan Petroleum Corp and MRPL both halted their Iranian oil buys amid difficulties securing insurance for refineries processing oil from the sanctions-hit country.
“Other crudes are not giving the right price margin. They are not of right type of quality and are not available at the right time,” said the source. “All these problems are there.”
MRPL stepped up purchases from term suppliers including Saudi Arabia and bought Oman oil to replace the Iranian barrels.
MRPL aims to import about 80,000 bpd of oil from Iran in the current fiscal year, similar to lifting in the year ended March 31, and could ship in up to four aframax cargoes in August.