India’s shipping ministry has authorized four vessels carrying Iranian crude oil to dock at the western port of Sikka, fulfilling a request made by Reliance Industries, three industry insiders. This marks a significant development as India, the world’s third-largest oil importer and consumer, has not received Iranian oil shipments since May 2019 due to US sanctions discouraging purchases of Tehran’s crude.
Last month, the United States issued a temporary waiver on sanctions related to Iranian oil imports at sea, aiming to alleviate rising global oil prices. This waiver is set to expire on April 19. Indian authorities, including the oil and shipping ministries as well as Reliance, have not provided comments on the matter.
Iranian crude is frequently transported by a shadow fleet of vessels that often lack internationally recognized insurance and safety certifications. Under Indian regulations, such ships require special government exemptions to berth at domestic ports.
In a notable move, the shipping ministry granted a one-time exemption for the vessels requested by Reliance, which operates the world’s largest refining complex. This decision was influenced by the urgent situation created by the closure of the Strait of Hormuz, a critical oil transit route.
The vessels cleared for docking include the Comoros-flagged aframax Kaviz, the Curacao-flagged very large crude carrier (VLCC) Lenore, and two Iran-flagged VLCCs, Felicity and Hedy. All four tankers are over 20 years old and subject to US sanctions. Each VLCC can transport up to 2 million barrels of oil.
India typically mandates that tankers older than 20 years obtain seaworthiness certification from the International Association of Classification Societies or an authorized Indian maritime body. The Hedy has been stationed near Chabahar port since April 1, while the Felicity arrived near the same port on April 3, based on tracking data from United Against Nuclear Iran (UANI), a US advocacy group monitoring Iranian tanker movements via satellite.
The Kaviz departed the Gulf region on Thursday, and the Lenore loaded crude oil from Iran’s Kharg Island on March 20, UANI senior adviser Charlie Brown. Despite the permissions granted, it remains uncertain whether Reliance will process the Iranian crude, as the company seeks to ensure all transactions comply with sanctions and Indian regulations.
Meanwhile, Indian Oil Corporation, the country’s largest refiner, has reportedly purchased Iranian oil transported by the sanctioned tanker Jaya, as indicated by ship tracking information.
