India is turning to Iran for 6m barrels of crude oil as it seeks to build up its strategic reserves, after talks with United Arab Emirates (UAE) stalled, Oil Price reported.
State firm Bharat Petroleum Corp will buy 4m barrels in two very large crude carriers (VLCCs). Mangalore Refineries and Petrochemicals Ltd will import 2m barrels, as India’s refineries are looking for more oil after the country’s import negotiations with UAE became bogged down over commercial terms, according to Press TV. The National Iranian Oil Company (NIOC) is set to supply Iranian Mix grade, which would fill half of the Mangalore storage facility in Karnataka,
India is building a strategic emergency storage in the country’s vast underground caverns to protect its growing economy against possible market hiccups. The country increased Iranian oil exports by approximately 600,000b/d as of August, the highest amount in the last fifteen years. The new shipments will bring Iran closer to levels before the sanctions in 2012 when the country exported about 2.3mb/d of oil.