Media reports indicate that Hindustan Petroleum Corporation (HPCL) does not have any crude-lifting contract with National Iranian Oil Company (NIOC) for 2013-14.
This is because NIOC turned down the proposal of HPCL
to have only an optional contract of 1 million tonne with the former.
Earlier, HPCL proposed to have only an optional contract of 1 million tonne with NIOC and it will be used on a need basis, if only there is no negative impact on its business.
HPCL proposed to have only optional contract with the Iranian firm because of the ongoing US/EU sanctions on Iran.
However, union oil ministry maintains that it is not guided by the Western sanctions while making crude imports from Iran and that it would follow the sanctions if only they were sponsored by the United Nations.
Meanwhile, HPCL raised import of crude oil from Iraq. The existing term contract with IraqÂ’s State Oil Marketing Company (SOMO) for 2.25 million tonne (45,000 barrels a day) of Basra light crude has been revised to 3 million tonne (60,000 barrels a day).
In 2013-14, HPCL plans to import 18 million tonne of crude oil.
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