Iran's Parliament reviews India's oil debt

Oil&Gas Materials 23 July 2011 14:36 (UTC +04:00)

Azerbaijan, Baku, July 23 / Trend/

The Iranian Parliament's Energy Commission will review India's debts over oil export on Sunday, Mehr News Agency reported.

The recent status of joint oil fields and drop in the country's crude oil production are on the Commission's agenda during the Sunday's session.

On Friday, Managing Director of international affairs in National Iranian Oil Company Mohsen Ghamsari said Iran may halt exporting oil to India, but it has not halted supplies for now.

Ghamsari noted both Iran and India are seeking the solution to oil payment. But the final decision is still to be taken by Iranian Oil Ministry caretaker Mohammad Aliabadi.

Iran exports 400, 000 barrels of oil per day to India.

According to Central Bank of Iran Governor Mahmoud Bahmani, India's debt to Iran has reached to $5 billion.

Tension between the two countries for oil payment started on Dec. 23 when India's Central Bank ( Reserve Bank of India ) put restrictions on transactions with Iran through the Clearing House System, Asian Clearing Union , believed by Washington to be used by Tehran for bypassing international sanctions.

India has agreed to stop paying for its Iranian oil imports via Germany since the German Chancellor Angela Merkel intervened by instructing Germany's central bank Deutsche Bundesbank to stop clearing payments from India to the bank, known as EIH , which is under U.S. but not EU sanctions.

Iran is the second-largest crude supplier to India after Saudi Arabia and accounts for about 14 percent of the country's oil import bill.

India 's state-run refiner Hindustan Petroleum said on Thursday it will not get oil supplies from Iran in August with Tehran insisting on resolving a seven-month-old payment row, reported Reuters .

HPCL runs a 130,000-barrel per day (bpd) refinery in Mumbai and a 166,000 bpd facility at Vizag. HPCL has a term deal with National Iranian Oil Co to annually buy 70,000 bpd oil.