Permit Iranian vessels: OilMin to MoS

THE Petroleum Ministry has asked the Ministry of Shipping (MoS) to permit Iranian vessels bringing in crude, after European insurers withdraw cover to India-bound cargo from July 1, the Oil Secretary, Mr G. C. Chaturvedi, said.

The Oil Ministry has been taking steps to ensure that the supply of crude oil from sanction-hit Iran is maintained. Western insurance companies, the only insurers for India-bound crude, plan to withdraw providing cover to vessels carrying Iranian crude from next month in order to tighten the sanctions noose.

"Iran is willing to ship crude oil," Mr Chaturvedi said here recently.

Oil industry executives have said insurance cover is a must for crude carriers, stressing on the fact that the oil they carry can be worth up to Rs 400 crore.

Mr Chaturvedi said the Ministry has also asked the Department of Financial Services, which governs state-run insurance firms, to direct public sector insurers to offer cover to vessels ferrying Iranian crude. He added that the government is also considering giving sovereign guarantee to Indian vessels.

India is among the seven privileged nations to be exempted from US sanctions earlier this month due to significant reduction in its oil imports from Iran.

Source : Exim News Service - NEW DELHI, June 26