ID :
197511
Wed, 07/27/2011 - 09:36
Auther :
Shortlink :
https://oananews.org//node/197511
The shortlink copeid
Indian Firm Confident about Settlement of Oil Payment Problems with Iran
TEHRAN (FNA)- India's State-run Mangalore Refinery and Petrochemicals Ltd said on Tuesday it is confident about resolving oil payment issue with Iran soon.
"The effort in resolving payment issue with Iran is under progress. We are confident that an all-acceptable solution will be found shortly," MRPL, which is Iran's top Indian client, said in a statement.
Since December, India and Iran have struggled to find ways for New Delhi to pay for imports of 400,000 barrels per day, 12 percent of its oil demand, after the Reserve Bank of India halted a clearing mechanism under US pressure.
Top exporter Saudi Arabia has offered cheap deals to the Indian firm to replace Iran, but MRPL has pushed back the offer, stressing that payment problems would soon be resolved.
MRPL, which runs a 236,400 barrels per day (bpd) coastal refinery in Southern India, buys about 150,000 bpd crude oil from Iran.
Meantime, the Indian finance ministry announced earlier this month that it is considering the option of allowing the buyers of Iranian crude to open letters of credit in rupee terms which can be used by Iran to purchase Indian goods, mainly tea, machinery and engineering services, reports said.
The move opens up the possibility for New Delhi to strengthen the baby steps taken towards globalizing the rupee.
The excess left with Iran, however, will have to be converted to other liquid currencies such as the euro as India does not want any foreign nation to hold huge stocks of idle rupees.
If the deal goes through, it will be the first tentative move towards making the rupee an international currency. The likelihood of trading with Iran using the rupee grew more after payments in euros through the Asian Clearing Union was stopped by the US and European sanctions.
If other West Asian oil exporters were to do the same, the US or any other net oil importer, will be forced to buy euro and yen to purchase oil from the international market. The power of the US dollar as a reserve currency will certainly fall, to that extent.
"The effort in resolving payment issue with Iran is under progress. We are confident that an all-acceptable solution will be found shortly," MRPL, which is Iran's top Indian client, said in a statement.
Since December, India and Iran have struggled to find ways for New Delhi to pay for imports of 400,000 barrels per day, 12 percent of its oil demand, after the Reserve Bank of India halted a clearing mechanism under US pressure.
Top exporter Saudi Arabia has offered cheap deals to the Indian firm to replace Iran, but MRPL has pushed back the offer, stressing that payment problems would soon be resolved.
MRPL, which runs a 236,400 barrels per day (bpd) coastal refinery in Southern India, buys about 150,000 bpd crude oil from Iran.
Meantime, the Indian finance ministry announced earlier this month that it is considering the option of allowing the buyers of Iranian crude to open letters of credit in rupee terms which can be used by Iran to purchase Indian goods, mainly tea, machinery and engineering services, reports said.
The move opens up the possibility for New Delhi to strengthen the baby steps taken towards globalizing the rupee.
The excess left with Iran, however, will have to be converted to other liquid currencies such as the euro as India does not want any foreign nation to hold huge stocks of idle rupees.
If the deal goes through, it will be the first tentative move towards making the rupee an international currency. The likelihood of trading with Iran using the rupee grew more after payments in euros through the Asian Clearing Union was stopped by the US and European sanctions.
If other West Asian oil exporters were to do the same, the US or any other net oil importer, will be forced to buy euro and yen to purchase oil from the international market. The power of the US dollar as a reserve currency will certainly fall, to that extent.
