Insurance companies not covering storage of Iranian oil, says Indian Oil official
Reuters | Oct 16, 2018, 14:13 ISTHighlights
- India, the world's third-biggest oil consumer, meets more than 80 per cent of its oil needs through imports
- An IOC official, on condition of anonymity, said: 'Insurance companies are providing for asset cover but are not covering the crude kept in storage'
(Representative image)NEW DELHI: Indian insurers are not offering coverage policies for storage of Iranian oil, an Indian Oil Corp Ltd (IOC) official said, owing to impending US sanctions on import of crude from Iran, which are expected to kick in on November 4.
"Insurance companies are providing for asset cover but are not covering the crude kept in storage," the official said on condition of anonymity.
Senior officials on Monday had said that Indian oil companies have optional volumes built in their annual crude oil purchase contracts with suppliers like Saudi Arabia and Iraq that will be more than enough to make up for any shortfall in supplies from sanctions-hit Iran.
India, the world's third-biggest oil consumer, meets more than 80 per cent of its oil needs through imports. Iran is its third-largest supplier after Iraq and Saudi Arabia and meets about 10 per cent of total needs.
"Insurance companies are providing for asset cover but are not covering the crude kept in storage," the official said on condition of anonymity.
Senior officials on Monday had said that Indian oil companies have optional volumes built in their annual crude oil purchase contracts with suppliers like Saudi Arabia and Iraq that will be more than enough to make up for any shortfall in supplies from sanctions-hit Iran.
India has optional volumes from Saudi, others to make up for shortfall from Iran
"We have optional volumes built in with all our term suppliers. These optional volumes can be taken at any time of the year and would be more than sufficient to make up for any shortfall that may arise because of US sanctions against Iran," a top official at a state-run refiner said.
India, the world's third-biggest oil consumer, meets more than 80 per cent of its oil needs through imports. Iran is its third-largest supplier after Iraq and Saudi Arabia and meets about 10 per cent of total needs.
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