Tehran Times quoted government as saying that permission for ships carrying Iranian crude oil here are being granted on a case by case basis on the request of oil PSUs.

The government clarification came days within one of its state refinery saying it could barely land a cargo from Tehran as the permission on CIF basis for ships carrying Iranian oil was withdrawn.

Ministry of External Affairs said that with the EU sanctions which came into effect on July 1st 2012 some complications arose due to the non availability of protection and indemnity club insurance to ships carrying Iranian crude oil. Consequently, a general exemption was granted by government to foreign ships carrying Iranian crude oil on CIF basis to dock at Indian ports under certain conditions.

The ministry said that subsequently, the national insurance companies have agreed to extend insurance cover to Indian ships for transportation of Iranian crude to India. In view of this, the general exemption granted earlier to oil PSUs for carrying Iranian crude on CIF basis has been withdrawn. We understand that there are some issues yet to be resolved between the national insurance companies and the ship owners regarding the terms of the insurance cover to be provided to Indian ships for carrying Iranian crude oil to India.

While the matter is being resolved, permission for ships carrying Iranian crude oil to India on CIF basis is being granted on a case by case basis on the request of oil PSUs, the ministry added.

Claiming that government has withdrawn CIF approval, Mr P P Upadhya MD of Mangalore Refinery and Petrochemicals Limited said that we were to import four tankers or cargoes of about 90,000 ton each from Iran in July. But we could only get one as the CIF approval was withdrawn.
Source - India Times

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