India’s crude oil imports from Iran rise 43.72% in August; Domestic production declines by 3.7%

India’s crude oil imports from Iran jumped a whopping 43.72 per cent to 2.07 million tonnes in August this year, according to latest government data.

India is among the largest importers of Iranian crude oil and the jump in imports comes amid increasing pressure from the United States (US) on Iran’s oil customers to cut purchases.

Cumulatively, oil imports by India from Iran in the first five months (April to August) of the current financial year increased 43.69 per cent to 13.32 million tonne as compared to 9.26 million tonne imported in the corresponding period a year ago, fresh data sourced from the Directorate General of Commercial Intelligence and Statistics (DGCIS), an arm of the ministry of commerce and industries showed.

In value terms, India imported $1.08 billion worth of crude oil from Iran in August alone, as compared to $0.52 billion worth of crude imported in the corresponding month last year.

India’s oil import from Iran in value terms during the five month period doubled to $6.82 billion from $3.27 billion worth of imports in the corresponding period last year.

Meanwhile, India’s crude oil domestic production declined by 3.7 per cent from a year earlier to 2.908 million tonnes in August, according to latest government data.

Natural gas production on the other hand rose marginally by 0.59 per cent when compared with August 2017 at 2789.34 million standard cubic meters (mscm).

The crude oil production was pulled down by ONGC this year. ONGC’s oil production stood at 1.783 million tonne which is 6.06 per cent lower when compared with August last year. An official statement said that among other reasons, the shortfall was due to less than planned production from WO-16 and B-127 fields in the absence of mobile offshore production units at Sagar Samrat and Sagar Laxmi.

There was also a sub-sea leakage in some well fluid lines of Mumbai High & Neelam Heera Assets leading to flow restriction. The line replacement will commence post monsoon under PRP-V scheme, the statement added.

Refinery production during August, 2018 stood at 21.438 million tonnes which is 4.84 per cent higher when compared with August 2017.

Shekhar Ghosh is consulting editor, Indoasiancommodities.com. He has edited and written for publications like Business India, Business Standard, Business Today, Outlook and many other international publications. He can be reached at shekhar.ghosh@indoasiancommodities.in.

Leave a Reply

Your email address will not be published. Required fields are marked *