The Gulf Time Newspaper One of the finest business newspapers in the UAE brought to you by our professional writers and editors.
Bloomberg
Iran’s biggest oil buyer in India is ready to throttle back imports from the Persian Gulf nation once a new supply deal kicks in. Essar Oil Ltd. expects to lower purchases from Iran after shipments from OAO Rosneft begin once the Russian state producer completes a deal to buy a stake in the Indian company, according to Lalit Kumar Gupta, Essar Oil’s chief executive officer. The refiner doesn’t plan to import any crude under the agreement this year and it’s undecided which country or project Rosneft will source the crude from, he said.
“When they are on board we will see how much to buy, what to buy†from Rosneft, Gupta said in an interview. The company will buy less from Iran when the supplies begin, he said.
Essar bought more than 148,000 barrels a day from Iran in the first six months of this year, accounting for more than 40 percent of the country’s purchases from the Persian Gulf nation, according to shipping data obtained by Bloomberg. The company gets about one-third of the crude it needs for its 20 million-tons-a-year refinery from Iran, Gupta said.
The international affairs office in Tehran of National Iranian Oil Co., the state producer, wasn’t immediately able to comment. India is Iran’s biggest oil buyer after China, according to the shipping data.
Rising supply under the Rosneft deal complicates Iran’s efforts to hold on to its expanded market share in Asia, particularly in India, where the International Energy Agency expects demand growth in the decades ahead to outstrip all other nations. Iranian shipments to India surged 63 percent in the first half of the year after international sanctions that restricted its supplies were eased in January.