Reuters reported that Indian state run refiner Hindustan Petroleum Corporation plans to lift up to three Suezmax crude cargoes or about 99,300 barrels per day oil from Iran this month.

Mr BK Namdeo executive director of HPCL said that India which has secured a waiver from US sanctions against Iran's nuclear program after cutting purchases aims to lift at least 15% less of its oil in the current fiscal year ending March 31st 2013.

To skirt European sanctions that have hit insurance and reinsurance of Iranian shipments, India has offered a limited cover of about USD 100 million for Iranian imports which local shippers have rejected saying it was inadequate.

The cover offered by state insurers for Iran shipments is a fraction of the USD 1 billion coverage that a supertanker carrying around 2 million barrels of crude would normally have from reinsurers.

India, Iran's second biggest crude customer after China, is also giving permission to refiners on a case by case basis to import oil using Iranian vessels and insurance.

Mr Namdeo said that HPCL, which imported only one Suezmax cargo in July of the two planned, has won permission from the shipping ministry to import oil using Iranian tanker and insurance in August. The shutdown in Vizag is expected to be over by mid August. But if that is extended, we may buy only two cargoes this month.

Source - Reuters

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