India’s Petroleum Minister M Veerapa Moily on Monday discussed with Rostam Ghasemi, Minister of Oil of Islamic Republic of Iran, ways to continue crude trade with Iran amid sanction from the United States and European Union.
Both the nations discussed development of Farzad B asset, insurance and shipping issues that are major hiccups in oil trade between the countries.
“The Indian side explained that it would encourage companies to maintain their engagement in terms of crude oil purchase, taking into account their requirements, based on commercial and international considerations,” Indian Government said in a statement after the day-long meeting.
India is finding it difficult to get ships and insurance for procuring crude from the Islamic nation. The Western Countries have put strict sanction on Iran over their nuclear activities.
Mangalore Refinery and Petrochemicals Ltd (MRPL), the largest buyer of Iranian crude, has not processed any oil from the country in current financial year.
In 2012-13, it bought 3.9 million tonnes of crude oil from Iran. According to reports, MRPL is still to find ways to import nearly 4 million tonnes from Iran.
“The two sides also discussed the marine insurance charged by the Iranian insurance companies for shipment of oil to India and arranging ships for carrying out the voyage,” the Ministry said.
Both the countries also discussed the issue of reinsurance cover for the composite insurance of Indian refineries, which has recently affected crude purchase from Iran.
In addition, issues related to Farzad B asset, where ONGC Videsh Ltd has stake, is being discussed. The fields have estimated reserves of more than 20 trillion cubit feet and may attract investments to the tune of $ 5 billion to exploit it.