Reliance Industries Limited (RIL), operator of the world’s largest single-location refinery processing about 1.4 million barrels per day (b/d), announced that it will stop importing Iranian crude from November to comply with US sanctions on the Islamic Republic, The Financial Tribune reported.
RIL affirmed that moving away from Iran will not lead to supply disruptions, as Iranian crude now only makes up a small percentage of its total crude imports.
RIL’s imports of Iranian crude rose by 45% from April 2016 to 2017, reaching 67,000 b/d, in the period of January-April 2018, it imported roughly 96,000 b/d.
However, after the US threatened to reimpose sanctions on Iran, RIL reportedly ordered about 8 million barrels of US crude.
“Our shipment from Iran has come down to much smaller portion of our overall imports now. And by November, our thinking could be to comply with the sanctions,” V Srikanth, RIL’s group deputy chief financial officer, told reporters.
“We source from all over the world and there are plenty of other crudes available in markets like Iraq and Saudi Arabia, among others,” he said.
Iran recently overtook Saudi Arabia to become the second biggest oil supplier to Indian state refineries between April and June 2018, Reuters reported.
Tehran’s willingness to offer discounted oil meant that India imported 457,000 b/d (5.67 million tons) over the three months.
Iraq remained India’s top supplier, shipping 7.27 million tons of oil during the period. Saudi Arabia’s shipments totaled 5.22 million tons, making it the third largest supplier.
Data compiled by Reuters shows that for the same period in 2017, Iran exported 279,000 b/d (3.46 million tons) to India, 40% less than the 2018 export figures.