Mangalore Refinery and Petrochemicals (MRPL) is finding it difficult to import the contracted quantity of oil from Iran for July due to delays in getting clearance from the shipping ministry for Iranian tankers to enter Indian shores. MRPL is the country’s largest importer of Iranian crude.
The shipping ministry recently withdrew a relaxed regime of giving clearance to cargo ships and asked refiners to utilise limited insurance cover by Indian non-life companies provided to Indian shipping companies.Under this, MRPL has got clearance for importing only one cargo for the month in an Iranian tanker.
?We had planned to import three cargoes of 6,60,000 barrels each from Iran for the month of July. So far, only one cargo is loaded and shipped. We are waiting for the shipping ministry?s approval for the others,? a senior official said requesting anonymity.
MRPL may not be able to import any more cargoes in the month as its shipping contractor, the Great Eastern Shipping Company (GESC), has refused to go to Iran due to sanctions and inadequate limited insurance cover for its vessels. Indian insurance companies had agreed to provide a dollar 50 million cover for protection and indemnity and another 50 million dollar for hull and machinery for every voyage to Iran. According to overseas reports, insurance premium for vessels carrying Iranian goods have gone up by as much as 30% in recent months due to the enhanced geopolitical risks.
?We are talking to Great Eastern, but it is not promising as they have shown reluctance in using their vessels for oil imports from Iran,? the official added.
Meanwhile, the petroleum ministry has sought a relaxation from the ministry of shipping in allowing Iranian carriers. ?The ministry of shipping is considering our proposal,? petroleum secretary GC Chaturvedi said on 22nd June.
Since the ban on Iranian oil imports by European Union came into effect from the beginning of this month, Indians oil companies are gradually reducing their dependency on oil from Iran and are making alternative arrangements.
MRPL has planned to cut down its oil import from Iran to 5 million tonnes this fiscal from 6.2 million tonnes in 2011-12. The company had bought around 7.1 million tonnes in 2010-11.