India Completes $900 mln Payment to Iran

Source: Reuters 11/5/2014, Location: Asia

Indian refiners completed payment of $900 million in frozen oil revenues to Iran under an interim deal that eased some sanctions against Tehran over its disputed nuclear work, said industry sources with direct knowledge of the matter.

Iran and the United States, China, France, Germany, Britain and Russia agreed in July to extend the initial six-month interim accord to Nov. 24 after they failed to agree a final resolution to their dispute before the deadline.

Tehran would have to curb its nuclear work to ensure it cannot be applied to weapons in exchange for removal of the sanctions that have hobbled its oil-based economy by cutting off the flow of payments for its crude exports.

"The first instalment of $400 million was cleared last month and today the companies paid the second instalment of $500 million," said one of the industry sources.

The sources declined to be named because they are not authorized to speak to the press.

In the second instalment of $500 million, Mangalore Refinery and Petrochemicals Ltd and Essar Oil paid around $220 million each, Indian Oil Corp about $60 million and Hindustan Petroleum Corp about $5 million, according to the sources.

Indian refiners settle 45 percent of their oil payment to Iran in rupees through a local bank, while they continue to hold on to the remainder that are remitted to Tehran under the interim deal. Iran uses the fund in rupee accounts to pay for imports from India.

The payments are made using an existing mechanism based on a series of back-to-back transactions in different currencies that are initially channelled through the Reserve Bank of India. Iran will eventually get the payment in dirhams from the United Arab Emirates' central bank.

Tough sanctions put in place in 2012 have reduced Iran's exports by more than half from around 2.5 million barrels per day (bpd).

Iran's biggest oil clients - China, India, Japan and South Korea - imported 6.6 percent less in September than a year ago, the first on-year decline since December, but shipments rose back above the 1 million bpd mark allowed under the interim deal that eased Western sanctions.

U.S. Secretary of State John Kerry will meet Iran's foreign minister and the European Union foreign policy chief in Oman on Nov. 9-10 to discuss the Iranian nuclear issue ahead of the Nov. 24 deadline for a final agreement.

For more information about related Opportunities and Key Players visit Caspian Region Projects


Norway >>  8/18/2022 - Equinor (EQNR) announced on 4 May 2022 an ordinary dividend per share of USD 0.20 and an extraordinary dividend per share of USD 0.20 for first quarte...
Australia >>  8/17/2022 - Highlights
- Underlying profit US$1,267 million, up 300%
- Statutory net profit after tax US$1,167 million, up 230%
- EBITDAX $2,731 m...


Morocco >>  8/17/2022 - Predator Oil & Gas Holdings Plc (PRD), the Jersey-based Oil and Gas Company with operations in Trinidad, Morocco and Ireland. is pleased to announce t...
Cameroon >>  8/16/2022 - Tower Resources plc, the AIM listed oil and gas company with its focus on Africa , announces that it has made an annual award of share options under i...

Norway >>  8/16/2022 - Reference is made to the stock exchange announcement on 11 August 2022 made by PGS ASA (“PGS” or the “Company”) regarding the conversion of NOK 75,712...
Argentina >>  8/15/2022 - Echo Energy plc, the Latin American focused upstream oil and gas company, is pleased to announce the results of the Placing, further to the Company's ...

Related Categories: Accounting, Statistics  Acquisitions and Divestitures  Asset Portfolio Management  Economics/Financial Analysis  General  Industrial Development  Insurance  Investment  Mergers and Acquisitions  Risk Management 

Related Articles: Accounting, Statistics  Acquisitions and Divestitures  Asset Portfolio Management  Economics/Financial Analysis  General  Industrial Development  Insurance  Investment  Mergers and Acquisitions  Risk Management 


Gulf Oil and Gas
Copyright © 2021 Universal Solutions All rights reserved. - Terms of Service - Privacy Policy.