Chairman of India’s biggest shipping company, Shipping Corporation of India (SCI), announced that SCI will resume sailing to Iran this month after a four-year gap, transporting an oil cargo for a state-run refiner, Trade Arabia wrote.
In July, SCI will use one of its Suezmax-sized tankers to resume shipping oil cargoes from Iran for Indian state-refiner Hindustan Petroleum Corp Ltd (HPCL).
In addition, Tehran currently supplies the bulk of its oil to India using its own vessels. Hence, India’s oil imports from Iran are set to hit a seven-year high in the year from the beginning of April, with refiners buying at least 400,000 b/d.
The previously imposed sanctions on the Islamic republic had prevented SCI from obtaining insurance cover for oil and other shipments, and as a result, SCI had stopped sailing to Iran in 2012, The Economic Times informed. As insurance was now available for Indian plants processing Iranian oil, HPCL will resume Iranian oil imports.
Meanwhile, the Central Bank of Iran had earlier announced that the government will receive euro payments for its oil exports to India.