Indian refiner MRPL secures Iranian insurance for oil shipment
India’s refiner MRPL has received a crude cargo under the coverage of an Iranian insurance company to become the first Indian firm taking such an action in the face of oil embargoes against the Islamic Republic, sources say.
Mangalore Refinery and Petrochemicals (MRPL) “recently got a cargo insured by an Iranian firm and other cargoes can also be insured from Iran. The company will do that on a case-by-case basis,” Reuters quoted one of the sources on Monday.
The Iranian insurer provided coverage for MRPL’s crude cargo of about 707,500 barrels, which arrived at India’s Mangalore Port last week.
Another source said, “As long as we can avail of Iranian cover we will continue to import cargoes on that basis.”
India is one of the biggest customers for Iranian crude. The Asian country accounts for more than 10 percent of Iran’s annual oil exports, worth about $12 billion.
Earlier in May, Indian General Insurance Corp. (GIC) said it planned to provide third-party liability coverage up to $50 million for ships importing Iranian crude in a bid to prevent the oil embargoes from disrupting Iranian crude shipments to India.
The European Union approved new sanctions on Iran’s oil and financial sectors on January 23. The sanctions are meant to prevent member states from buying Iranian crude or doing business with its central bank. The sanctions will come into force as of July 1.
Additionally, the embargo banned European companies from transporting, purchasing or insuring crude and fuel originating in Iran and intended for anywhere in the world.
The US and the EU have imposed new financial sanctions as well as oil embargoes against Iran since the beginning of 2012, claiming that the country’s nuclear energy program includes a military component, a claim Iran has strongly rejected.
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