Dec 11 - Indian Companies Look to Replace Iranian Crude Supplies

Source Press
Company Bharat Petroleum Corporation LimitedKuwait Petroleum CorporationSaudi Aramco 
Tags Oil & Gas Trading
Date December 16, 2011

(Reuters) Indian companies have begun talks with alternative suppliers to slowly replace Iranian oil, fearing their current mechanism for payments to Tehran for some 350,000 barrels a day (bpd) via Turkey could soon succumb to sanctions, industry sources said. The fear was sparked by Turkey's Halkbank refusing to open an account for Indian refinery Bharat Petroleum. Indian refiners are also upset that Iran has asked them to pay about $15 million as interest on delayed payments in the first seven months of 2011 when they could not transfer funds. The Indian companies are looking to Saudi Aramco,  Kuwait Petroleum and  the spot market as potential alternative source. Officials at Indian oil firms say they would approach the country's oil ministry to ask it to request exemptions.

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