• HPCL winds down Iran oil supply as US-led sanctions inch closer

    Hindustan Petroleum Corporation Ltd (HPCL) does not have any more oil purchases from Iran at least till November as the trigger date for the US-led sanctions inches closer.

    Responding to the queries on the steps being taken to mitigate the impact of the US sanctions on Iran on Indian oil importers, HPCL Chairman and Managing Director MK Surana said: “The issues are being discussed at the diplomatic level with Iran. It is a developing situation right now. The date is November 4, but in the meantime, everything keeps changing in diplomacy.”

    The US has imposed the sanctions from November 4, threatening companies to fully wind down activities with Iran or risk exclusion from the American financial system.

    This has led to insurers refusing to extend their services to crude oil tankers directed from Iran. HPCL had to cancel a consignment last month.

    On the current position of insurers with regard to Iranian crude sourced by HPCL, Surana said, “There was nothing to sort out with the insurers…our contracts do have the provision for doing that. It is an interpretation of the policies during the wind down period.”

    “Whether the contracts will be seen as new contracts or as old ones is to be seen too. We can review our position when we are nominating our next cargo. Right now we don’t have any nominations for September – October,” he said.

    “Total imports earmarked for Iran was 1 million tonne this year (out of 18.5 million tonne of total imports)…Of this, we have already bought 0.2 million tonne,” Surana added.

    HPCL meanwhile reported a net profit of ?1,719 crore profit after tax for Q1 of FY19. This is 86 per cent higher than the ?925 crore net profit reported by the company during the same period in the previous fiscal.

    Revenue for the quarter stood at ? 72,923 crore (?59,891 crore).
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