India’s Essar Oil imported 21.1 percent more Iranian oil in June compared to previous year and shipped in Kazakhstan’s CPC blend for the first time, Reuters reported.
Essar was the only Indian client of Iranian oil in June buying 138,900 barrels per day (bpd), a growth of 16.3 percent.
The refiner, however, has cut Iranian oil imports by about a third in the first half of this year when it received 86,300 bpd as it stepped up purchases last year ahead of sanctions starting in July 2012.
The United States renewed six-month waivers on sanctions for India earlier this month in exchange for reduced purchases of oil from Iran.
Two government-run refiners, Mangalore Refinery and Petrochemicals Ltd and Hindustan Petroleum Corp, stopped importing oil from Iran from April; as local insurers said they could no longer cover plants that process Iranian oil after Europe-based reinsurers backed out.
However, Essar continued using Iranian oil based on legal advice that EU sanctions are not applicable in this situation, but there is some uncertainty as it is up to reinsurers to interpret the sanctions.
Indian Oil Corp, the country’s largest oil refiner, is not planning to lift Iranian cargoes until the fourth quarter.
