India to Cut Iranian Oil Imports

India to Cut Iranian Oil Imports

India declared it will cut oil imports from Iran in 2017/2018 by a fifth from 240,000b/d to be 190,000b/d, Reuters reported, citing sources familiar with the matter.

As informed by Press TV, the measure is an attempt to push the Iranian government to award concessions on the Farzad B field which is a giant Iranian gas reservoir that New Delhi has been coveting for years to be awarded to an Indian consortium.

An Indian source told Reuters: “We are cutting gradually, and we will cut more if there is no progress in the matter of the award of Farzad B gas field to our company.”

The offshore field in the Persian Gulf is estimated to hold reserves of 12.5tcf of natural gas in place, with a lifetime of 30 years.

Indian Mangalore Refinery and Petrochemicals Corporation declared that they will reduce imports by 20,000b/d each to about 80,000b/d. Furthermore, Bharat Petroleum Corporation and Hindustan Petroleum Corporation will together cut imports by around 10,000b/d to 30,000b/d.

In response to India’s position, the National Iranian Oil Company (NIOC) stated that the discount offered to Indian buyers would be reduced from 80% to about 60%.

India is Iran’s second biggest oil buyer and one of the few countries that upheld its agreements with the Persian nation during the US sanctions on Tehran.

Mariana Somensi 890 Posts

Mariana holds a Journalism Bachelor Degree from the State University of Londrina, Brazil. The Brazilian journalist has 4 years of experience on the MENA region's affairs and over a year of experience on the oil and gas industry.

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