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.