India Buys more Iraqi Oil

By John Lee.

India’s Hindustan Petroleum (HPCL) aims to increase crude imports from Iraq by 8 percent to about 65,000 bpd in the year to the end of March 2015, as it takes up better terms offered by Baghdad.

The company’s director of refineries, B. K. Namdeo, told Reuters that Iraq is offering 60 days’ credit on purchases, up from 30 days previously.

HPCL halted purchases from Iran in April after insurers did not extend coverage for processing oil from the sanctions-hit nation.

Although Iran has reached a deal with world powers over its nuclear programme which has meant the relaxation of some sanctions, insurance and reinsurance for processing its crude has not yet been addressed.

India’s biggest refiner, Indian Oil Corporation (IOC) has increased volumes from Iraq by 5 percent to 284,000 bpd, as it also took advantage of the better credit terms.

(Source: Economic Times)

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