New Delhi: State-run Mangalore Refinery and Petrochemicals Ltd said on Tuesday it is confident about resolving an oil payment issue with Iran soon, potentially ending an eight-month stalemate, and hopes to get crude supply from Tehran in August.
“The effort in resolving payment issue with Iran is under progress. We are confident that an all-acceptable solution will be found shortly,” MRPL, which is Iran’s top Indian client, said in a statement.
MRPL, which runs a 236,400 barrels per day (bpd) coastal refinery in southern India, buys about 150,000 bpd crude oil from Iran.
Iran, which has cut supply as it tries to put pressure on Indian refiners to settle more than $5 billion in debt towards oil supplies, want New Delhi to find a way to pay for future imports.
Since December, India and Iran have struggled to find ways for New Delhi to pay for imports of 400,000 barrels per day, 12% of its oil demand, after the Reserve Bank of India halted a clearing mechanism under US pressure.
That move won praise from Washington, which is using sanctions in a bid to get Tehran to halt its nuclear programme.
Top exporter Saudi Arabia has struck deals to sell 3 million barrels more oil to India in August, stepping into the vacuum created by regional rival Iran after it cut supply to New Delhi.
MRPL also said its plan to commission extra 60,000 barrels per day (bpd) refining capacity was on track and would be ready by January-February next year.
The refiner plans to shut down a 93,600 bpd crude unit for 45 days from mid-September for a planned revamp, the statement added.