Iran offers to ship crude to India for free to boost sales - sources

Iran offers to ship crude to India for free to boost sales - sources

Iran is offering free delivery of crude to major client India, industry sources said, signaling that tough Western sanctions which have slashed its exports in half are driving Tehran to increasingly desperate measures to keep oil flowing, Reuters reported.

The United States has yet to ease the pressure on Asian buyers to continue reducing purchases from the OPEC member, even though Iran and world powers began two days of talks on Thursday hoping to reach a "first step" towards ending the decade-old standoff over Tehran's disputed nuclear program.

The drop in exports is costing Iran billions of dollars in lost revenue every month. Tehran is also unable to repatriate most of the money earned from oil it does manage to sell, as the sanctions have cut off bank transfer facilities, crippling its economy by choking off its biggest revenue stream.

Despite the near halt of petrodollar payments, Iran is resorting to measures such as offering deep discounts on oil and now free delivery to India, according to sources who requested anonymity because of the sensitivity of the issue.

Iran's remaining Indian clients - Mangalore Refinery and Petrochemicals Ltd, Essar Oil and Indian Oil Corp - could save freight of 70 cents to $1 a barrel on purchases from Iran, said one of the sources.

Tehran is also offering Indian buyers a discount on price if refiners raise purchases, the sources said.

"The more you buy, the more incentives you get. If a refiner buys 30 million barrels of Iranian oil in a year then the discount translates to 25 cents per barrel," this source added.

Iran already offers 90 days' credit on crude sales to Indian refiners while most other producers stick to 30 days' credit.

While any discount would be attractive as India tries to curb an oil import bill that was around $170 billion in 2012/13, it likely would be wary of raising imports just prior to a review of its waiver from U.S. sanctions.

India's six-month exemption comes up for renewal in early December, shortly after top U.S. energy diplomat Carlos Pascual's current visit to New Delhi.
Sources have said the United States is unlikely to allow Iran's exports to rise before a deal is struck with Tehran. Both sides involved in the Geneva talks have said a breakthrough was far from certain.

India so far looks well on track to meet U.S. conditions to renew its waiver. Daily imports from Iran slid 34 percent in June-September from the six months between December 2012 and May 2013, data from trade sources shows.

India is one of Iran's few remaining clients along with other Asian buyers China, Japan and South Korea.

In India, there is about $5.3 billion of Iranian oil money held up by the sanctions. Of the total, about $1.8 billion is with the oil companies who have bought crude from Iran and the remainder is held with a bank, sources said.

In South Korea, total Iranian money stuck in bank accounts is more than $5 billion, a source with direct knowledge of the matter said.

In Japan, a similar amount of Iranian oil money has been held up since the beginning of the year, according to sources.

Subscribe to Trend in Google News! Subscribe
Nureddin Nebati replaces Elvan as Turkey's new finance minister
Nureddin Nebati replaces Elvan as Turkey's new finance minister
Cavushoglu, Blinken discuss situation in Azerbaijan and Armenia
Cavushoglu, Blinken discuss situation in Azerbaijan and Armenia
President Erdogan talks bilateral relations with Crown Prince of UAE
President Erdogan talks bilateral relations with Crown Prince of UAE
Loading Bars
Latest
Nureddin Nebati replaces Elvan as Turkey's new finance minister
Iran, Russia to speed up construction of International North-South Corridor
Uzbekistan tightens quarantine measures for people coming from Germany, UK and 9 other countries
Georgian PM invited to Eastern Partnership Summit
Ireland reports first case of Omicron variant
Amazon invests in 274 renewable energy projects globally
World Bank backs using $280 mln in frozen aid funds for Afghanistan
Cavushoglu, Blinken discuss situation in Azerbaijan and Armenia
Alec Baldwin on fatal movie set shooting; ‘I didn't pull the trigger’
Afghanistan's GDP likely to drop 20 pct in one year: UN
UAE reports its first case of COVID-19 variant Omicron
Moderna exec says company could have Omicron booster ready in March
UN says international migration rose last year despite Covid-19 impact
Kyrgyz border service reports shots from Tajikistan
Bennett declares ‘Yamam’ Israel’s national counterterrorism force
Transport infrastructure in Karabakh to turn Azerbaijan into logistics hub between Central Asia and Europe – CAERC
Four injured after old WWII aircraft bomb explodes in Munich - police
1st US case of COVID-19 omicron variant identified - Fauci
OPEC can elect new secretary general in January 2022 — source
President Erdogan talks bilateral relations with Crown Prince of UAE
Georgia to receive special PCR tests to detect new Omicron variant of coronavirus
Qatar Airways to launch flights to Uzbekistan from Jan 17, 2022
Iran military clashes with armed men on Afghan border
Armenia found itself in complete military-political isolation even within CSTO - Russian military expert
Net foreign assets in Azerbaijan grow for 10M2021
New geopolitical situation in region opens way for Azerbaijan’s further development - ambassador
Ambassador of Kazakhstan expresses condolences to Azerbaijan due to helicopter crash
Azerbaijan working on reconstruction railway line which is part of Zangazur corridor (PHOTO)
SOCAR’s STAR refinery tests numerous types of crude oil
Azerbaijan considering sending medical workers of Baku clinics to district hospitals
Azerbaijan shares data on number of vaccinated citizens
Azerbaijan confirms 1,795 more COVID-19 cases, 1,967 recoveries
Azerbaijani National Depository Center opens tender to buy new generation security system
Georgia boosts honey exports
Solar PV growth to surpass wind in EU in 2021-2026
Servicemen injured in Azerbaijani helicopter crash talk about incident (PHOTO/VIDEO)
Turkmen company exports paper products to Uzbekistan, Turkey
Iranian companies express readiness to restore factories in Syria - minister
Azerbaijani, Armenian FMs to meet in Sweden
President Ilham Aliyev receives EU Special Representative for South Caucasus (PHOTO/VIDEO)
US Marshall Legacy Institute sends eight more mine detection dogs to Azerbaijan (PHOTO)
Iran’s Bahar Azadi gold coin price rebounds
Azerbaijani agency shares data for mine detection, clearing work in liberated territories
Central Bank of Azerbaijan opens tender to insure fixed assets
Azerbaijan’s 10M2021 oil exports to Spain revealed
Uzbek Statistics Committee shares data on volume of retail trade turnover
Georgian medics advise reconsidering COVID-19 passports issuance
Overview of Uzbekistan's volume of wholesale trade turnover dynamics between 2010-2020
Price indexes of construction, trade sectors at Uzbek stock exchange fall
Georgia, IMF discuss new co-op program
Prices for goods and services in consumer market of Uzbekistan rise
Turkey’s diesel fuel exports to Georgia down
Georgia, NATO discuss further co-op and Black Sea security
Iran bans import of musical instruments due to lack of foreign exchange resources
Turkmen ministry prolongs tender for supply of metal blanks
IRENEX shares data on sales of Tabriz Oil Refining Company
Activities in Iran’s Imam Khomeini port down
Star Refinery satisfies about quarter of Turkey's refined petroleum product needs - CEO
Kazakhstan’s oil and gas company opens tender to supply fittings
Mobile phones rank first in Iran’s total imports - IRICA
Turkmenistan’s education ministry extends tender for setting drip irrigation system
Oil minister tells president, parliament that Iran's oil exports 'significantly grow'
Azerbaijan, Pakistan talk prospects for development of military co-op (PHOTO)
Azerbaijan's SOCAR Polymer exports increase over 10M2021
Iran unveils volume of dates export
Iran’s CBI reveals data on balance of bank loans
EU to exceed current renewable capacity plans for 2030
Azerbaijan reveals oil exports to Italy in 10M2021
Azerbaijan shares data on oil export to Croatia in 10M2021
Baku Metro provides ‘November 8’ station with backup power supply (Exclusive) (PHOTO)
Renewable electricity generation to exceed average annual growth rate of 2015-2020
Expansion of bioenergy for power capacity to slow down
Renewable energy capacity to expand by 2026, says IEA
Azerbaijan talks ongoing work to provide electricity to liberated Lachin district
Special representative of Azerbaijan's President in liberated territories within Karabakh economic region appointed
German Ambassador expresses condolences to Azerbaijan over deadly helicopter crash
Iran, Syria sign four cooperation agreements
Iran to invest in Syrian industrial towns
Austria extends COVID-19 lockdown by 10 days
Branch of Azerbaijan’s Balakhani Operating Company opens tender to buy pipes, pumps
Baku electric company opens tender to buy materials for lamp posts repair
Organization of social zone of Aghdam Industrial Park completes in Azerbaijan – minister
Deputy Prime Ministers of Azerbaijan, Armenia and Russia to meet in Moscow today
Azerbaijan’s Azerishig opens tender for reconstruction of substation in Sumgayit
Kazakhstan increases trade with India over 9M2021
Nar continues to grow IT professionals (PHOTO)
India provides medical, humanitarian aid to over 150 countries to deal with COVID-19: MEA
Georgia receives COVID-19 support grant from German Development Bank
Turkey-Azerbaijan trade turnover grows in October 2021
Kazakhstan reports increase in maritime transport volumes
SOCAR Petroleum to open new petrol station in Azerbaijan’s Gubadli district
SOCAR Georgia Gas increases gas tariffs
Iran reveals COVID-19 data for December 1
Azerbaijan discloses data on oil exports to Israel
Georgian cities receive EU grant for cultural development
Saudi Arabia reports first Omicron case coming from north Africa
Georgian FM expresses condolences for lives lost in crash of military helicopter
PMO records increase in cargo movements in Iranian ports
Turkey’s BOTAS increases gas imports
Hungary launches Stipendium Hungaricum scholarship programm
All news