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Saudi Aramco to supply an extra 2 million barrels per month to IOC from July

Gasoil News - Published on Mon, 20 May 2019

Image Source: Saudi Gazette
An IOC executive said, as New Delhi seeks to make up for a loss in supplies from Iran, Saudi Aramco will supply state-run Indian Oil Corp Ltd (IOC) an extra 2 million barrels of crude a month from July to December. Saudi Arabia approached Indian buyers last month offering them additional supplies to compensate for lost Iranian oil after US sanctions kicked in. The United States, which imposed new sanctions on Iran in November, initially gave Indian and seven other buyers a 6 month waiver to allow them to continue importing Iranian oil. Those waivers have not been renewed. IOC has a term deal to buy 5.6 million tonnes from Saudi Aramco in the financial year 2019/20 that started on April 1 and an option to buy additional 2 million tonnes.

Mr AK Sharma, IOC finance director, said that “We have told them we will be taking 2 million barrels every month for six months from July (about 1.6 million tonnes in total) and they have agreed.”

India, Iran’s top client after China, has close diplomatic ties with Iran but wants to work closely with the United States.

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Posted By : Rabi Wangkhem on Mon, 20 May 2019
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