New Delhi: India has received its first Iranian crude oil shipments in nearly seven years, with two very large cargoes arriving almost simultaneously at ports on the east and west coasts, according to ship-tracking data. The tanker Felicity, operated by the National Iranian Tanker Company, reached off Sikka in Gujarat late Sunday carrying around 2 million barrels. The cargo had been loaded at Kharg Island in mid-March.
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At about the same time, Jaya docked near Paradip in Odisha with a similar quantity of crude. This shipment had been lifted from Kharg Island in late February, before the United States and Israel carried out military strikes on Iran, followed by retaliatory action from Tehran.
These deliveries have been enabled by a limited sanctions waiver issued by the United States last month. The exemption allows the sale of Iranian crude that was already at sea, in a bid to ease supply tightness and moderate prices. The relief, however, is short-lived. The waiver is valid only until April 19.
Complicating matters further, Washington announced a blockade of Iranian ports after weekend peace talks failed, signalling renewed efforts to restrict Tehran’s oil revenues.
The identity of buyers for the current shipments has not been formally disclosed. Paradip port, where one of the cargoes has arrived, is primarily operated by Indian Oil Corporation, which has confirmed purchasing at least one Iranian shipment under the waiver. Sikka, on the other hand, is a key crude hub used by Reliance Industries and Bharat Petroleum Corporation Limited (BPCL), both of which have infrastructure in the region.
An earlier attempt to bring Iranian crude into India did not materialise. The tanker Ping Shun, carrying roughly 600,000 barrels, had initially been headed to Vadinar in Gujarat. It was later diverted to China mid-voyage due to payment issues. Had that shipment reached India, it would have marked the first such delivery since imports were halted.
Iran was once among India’s largest crude suppliers, with refiners favouring Iran Light and Iran Heavy grades for their compatibility and commercial terms. In 2018, India imported about 518,000 barrels per day of Iranian oil. This fell to 268,000 bpd between January and May 2019 during an earlier US waiver phase.
Following tighter sanctions, imports stopped entirely from May 2019, with refiners turning to alternative sources including the Middle East and the United States. At its peak, Iranian crude accounted for 11.5 percent of India’s total imports.
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The latest waiver comes against the backdrop of elevated oil prices driven by the US-Israeli conflict with Iran. Around 95 million barrels of Iranian crude are currently floating at sea. Of this, about 51 million barrels are considered suitable for India, while the rest is more aligned with demand from China and Southeast Asia.
