Essar imports 64% more oil from Iran

Exactly 11 months ago, critics were wondering if the restrictions imposed on Iran would cripple the economy. Essar Oil's demand for more oil from Iran, has only proven such critics wrong

The Dollar Business Bureau

Imports of Iranian oil by Essar have increased by over 64%. Media reports and the data available within them confirm a steep increase in oil imports between corresponding periods of January and February. Iranian oil, considered as main source of ingredient for Essar’s crude-refining projects, saw shipments surge by 112,000 barrels-per-day (bpd), a 3.7% hike within the first 11 months, starting April 2015. Comparatively, Essar’s total oil imports have also risen, to a figure of close to 400,000 bpd. The lifting of sanctions is a critical reason for the hike in numbers. January 2016 got marked as an important date with US State secretary, John Kerry making an announcement that Iran had conformed to the restrictions and regulations set forth by International Atomic Energy Agency. Post the announcement, trade with Iran was free from any restrictions. The decision however meant the entry of a supplier to an already supply-rich market. Essar has primarily accounted for over 80% of Iranian oil imports, however the Gujarat-headquartered firm until April 2015 imported approximately 22,000 bpd. Oil importers remained skeptical of the UN-sanctions on Iran, and hence Iranian oil imports fell by 23% in 2015. Delhi was Tehran’s biggest client after Beijing, but US-led sanctions are said to literally cripple the oil and energy sector sometime in 2012. More oil is better for Essar, as it operates India’s second largest oil refinery at Gujarat. Essar’s Vadinar refinery in Gujarat started commercial production in May 2008 with an annual capacity of 20 mmtpa, or 405,000 bpd.

March 30, 2016 | 05:35pm IST

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The Dollar Business Bureau - Mar 30, 2016 12:00 IST

Essar imports 64% more oil from Iran

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