Indian Refiners Offered Oil Tanker Service

EghtesadOnline: The National Iranian Tanker Company is willing to expand cooperation with Indian refiners and help ship their petroleum products to target destinations.

News ID: ۷۴۱۶۳۳

22 May 2017

Managing director Sirous Kianersi made the statement in India last week after meeting with the country's Oil Minister Dharmendra Pradhan, Shana reported.

"NITC, one of the world's major oil tanker companies, is ready to transfer Indian refiners' crude oil and derivatives," Kianersi said, adding that NITC has signed deals with several European companies for leasing its vessels.

According to reports, an Iranian delegation, including NITC officials, visited India last week to discuss prospects for expanding economic and energy collaboration.

According to Financial Tribune, this was the second meeting between the two county's oil officials since some of India's state-owned refiners said they would cut crude imports from Iran following an impasse in negotiations over developing Farzad-B, a large gas reservoir in the Persian Gulf.

According to the official, NITC has signed 35 tanker-leasing contracts with European companies such as Spain's Cepsa and Italy's Eni as well as with Greek and Dutch firms.

NITC operates one of the world's largest tanker fleets ahead of regional rival Saudi Arabia as well as Qatar, Oman and the UAE, according to the United Nations' 2015 Maritime Transport report.

Iran has 42 very large crude carriers, nine Suezmaxes, five Aframaxes and several other ships.

According to Kianersi, NITC tankers and supertankers frequently berth at international ports, including in Russia, China, South Korea, Taiwan, Singapore, India, Turkey and the UAE.

"Our oil companies and refining complexes are willing to promote collaboration with NITC," Pradhan was cited as saying by Shana.

Following the lifting of international sanctions last year, Indian company ONGC Videsh Ltd. ramped up efforts to secure the development rights of Farzad-B, but Tehran says the ONGC proposal is not attractive.

In response to the rejection, Indian state refiners announced plans to cut crude oil imports from Iran by a quarter in fiscal 2017-18, a measure that led to an exchange of strong words between the two governments.

Senior Iranian and Indian officials met in Tehran last week to discuss and settle the gas field dispute.

Kianersi's meeting with India's top oil officials is part of efforts to improve energy ties with New Delhi, one of the biggest buyers of Iranian crude.

Last month, Oil Minister Bijan Namdar Zanganeh said India is one of the "good costumers" of Iranian oil, but asserted that "We cannot sign a contract under threat."

NITC, POC MoU

NITC and Pasargad Oil Company signed a memorandum of understanding on Sunday to establish a joint venture and expand collaboration.

The agreement was signed by Kianersi and POC's board member Fereydoun Darvishzadeh in Tehran.

Pointing to POC as a major bitumen supplier in the Middle East and the Indian Ocean Rim, Darvishzadeh noted, "Cooperation with the NITC, as a major shipping firm, will help us expand our share of global markets."

According to the official, the global demand for bitumen is more than 100 million tons per year and the NITC can play a significant role in carrying POC bitumen in compliance with the international standards. Global bitumen market was worth $75 billion in 2015, but it is forecast to reach $170 billion by 2024.