World Business and Economic Analysis
World Business and Economic Analysis
Iran’s crude oil exports to India in March 2016 surges from 290 to 505 thousand barrels per day turning the South Asian country into Iran’s second largest oil customer.
During sanction years, India purchased about 20 per cent of Iran’s oil exports equal to an average of 200 thousand barrels per day.
Following the implementation of the Joint Comprehensive Plan of Action (JCPOA), India increased its oil imports from Iran as Indian refineries have made new oil purchase proposals.
The surge in oil exports marks a significant achievement for the Iranian government in development of activities in regional markets after the removal of sanctions.
In March 2016, India’s Essar Oil refinery ranked first in importing crude oil from Iran while Mangalore Refinery and Petrochemicals Limited (MRPL) stood in the second place.
Also after a six-year hiatus, Reliance Petroleum Limited of India purchased a shipment of oil condensate produced at Iran’s Forouzan oilfield.
On the basis of a report released by Iranian Ministry of Oil’s Office for OPEC affairs and relations with energy organizations, the average volume of India’s imports from Iran reached 4.35 million barrels per day in the first three months of the year 2016 indicating a 500-thosand increase as compared to same period a year earlier.
Iran remains as the third supplier of India’s oil demands following Saudi Arabia and Iraq.
The South Asian country’s imports from Iran reach a total of 505 thousand barrels in March revealing a 290-thousad growth as compared to February, 2016.
Currently, Iran ranks third among oil exporters to India while at the beginning of 2016 the country only stood in the sixth place.
Recently, Reuters touched upon Iran’s oil exports to India reporting “India’s crude oil imports from Iran have reached more than 500 thousand barrels per day marking the highest level in the past five years.
Japanese ambassador to Iran said Mon. his country is preparing to send a high-ranking trade delegation to Tehran and resume high level of economic relations with the Islamic Republic.
Hiroyasu Kobayashi, Japan’s Ambassador to Iran, in a meeting with Governor of Eastern Azerbaijan Esmaeil Jabbarzadeh on Monday, said various MoUs have been signed between Tehran and Tokyo in the past eight months and all major Japanese companies in Tehran have increased their staff two to three times.
“The signing of an investment MoU and the opening of a $10 billion credit line are very promising for the implementation of big project in this country,” he said.
Iran-Japan’s first economic MoU was signed in February in the presence of Iranian economy minister and Japanese Foreign Minister Fumio Kishida. During the meeting, the two sides also reached an agreement to open a $10 billion credit line for financing the country’s projects and developing foreign investment capacities.
The Japanese envoy added that Japan is also participating in environmental projects and the revival of Lake Urmia; “This is the third consecutive year that Japan has contributed $1 million to the UN for the revival of Lake Urmia, and various projects in social and economic fields have been executed in this regard,” he said.
“Holding conferences is the best step toward expanding cooperation and we are ready to cooperate with East Azerbaijan in various areas, particularly in agriculture, environment and tourism,” he said.
