Insta
Indian Oil Corporation Signs Contracts To Import US Equity Oil To Make Up for Half Of Lost Iranian Crude Volumes
Swarajya Staff
May 18, 2019, 04:57 PM | Updated 04:56 PM IST
Save & read from anywhere!
Bookmark stories for easy access on any device or the Swarajya app.
With Iranian crude oil imports having been forced to a halt due to United States (US) sanctions, the Indian Oil Corporation (IOC) has jumped into action with the signing of term contracts for 4.6 million tonnes of oil imports with Equinor of Norway and Sonatrach of Algeria, each of have oil and gas fields in the US, reports The Times of India.
These term contracts signed with Equinor and Sonatrach for 2019-20 will make up for as much as half of the lost Iranian imports as the country imported 9 million tonnes of crude oil from Iran in the year 2018-19.
With this development IOC has become the first Indian oil refiner to sign contracts for US equity oil since full-fledged sanctions against buying Iranian oil came into effect.
Looking at diversifying its sources to make up for the lost volumes of the cost-effective Iranian oil, the IOC Director (finance) AK Sharma said, "We have diversified our sourcing and we have robust supply chain to make up for all the Iranian oil."
Save & read from anywhere!
Bookmark stories for easy access on any device or the Swarajya app.
Introducing ElectionsHQ + 50 Ground Reports Project
The 2024 elections might seem easy to guess, but there are some important questions that shouldn't be missed.
Do freebies still sway voters? Do people prioritise infrastructure when voting? How will Punjab vote?
The answers to these questions provide great insights into where we, as a country, are headed in the years to come.
Swarajya is starting a project with an aim to do 50 solid ground stories and a smart commentary service on WhatsApp, a one-of-a-kind. We'd love your support during this election season.
Click below to contribute.