India’s shipping ministry has approved a special request allowing four tankers transporting Iranian oil to berth at the Sikka port in Gujarat. This decision was made following a request from Reliance Industries, as reported by three industry sources. Since May 2019, India has not imported any oil from Iran due to pressures from the United States, which has consistently urged allies to refrain from purchasing Iranian crude.

Despite the ongoing geopolitical tensions, the US recently enacted a temporary waiver for sanctions that applies to the purchase of Iranian oil at sea. However, this waiver is slated to expire on April 19. Inquiries made to both India’s oil ministry and Reliance Industries regarding this development went unanswered.

Details on the Tankers Involved

The vessels granted permission include the Comoros-flagged aframax Kaviz, the Curacao-flagged very large crude carrier (VLCC) Lenore, and two Iranian-flagged VLCCs named Felicity and Hedy. All four ships are over 20 years old, with each supertanker capable of holding up to 2 million barrels of oil. Indian regulations typically require tankers of this age to possess seaworthiness certification from recognised bodies, such as the International Association of Classification Societies, or entities authorised by India’s maritime authorities.

The Hedy has reportedly been positioned near Chabahar port since April 1, while the Felicity was observed nearby on April 3. The Kaviz departed from the Gulf on a recent Thursday, and the Lenore is noted to have loaded crude from Iran’s Kharg Island on March 20, according to intelligence provided by United Against Nuclear Iran, a US advocacy organisation monitoring tanker traffic related to Iran.

It is important to note that these tankers are part of a fleet that operates without internationally recognised insurance and safety certifications, creating additional scrutiny regarding their operations. The government needs to provide special permissions for such vessels to dock as exemptions to standard maritime regulations are typically required.

Future Prospects for Processing Iranian Oil

Despite the recent permission granted to Reliance, sources indicate that it remains uncertain whether the company will proceed with processing Iranian oil. Reliance reportedly wants to ensure that any transactions are compliant with existing sanctions and align with Indian regulations, demonstrating a cautious approach amidst the evolving situation.

Indian Oil Corporation, the country’s leading refiner, has previously acquired Iranian oil transported by the sanctioned vessel Jaya, as detailed by ship tracking data. This reflects a broader interest in sourcing oil while navigating the complexities of international sanctions.

As the global oil market continues to fluctuate, India’s reliance on diverse sources of crude oil remains crucial for its energy security. With its status as the world’s third-largest oil importer, any changes in its sourcing strategy could have significant implications for its domestic fuel prices and overall energy landscape.

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