Indian state-run oil company experiences difficulties with Russian oil shipments

Indian state-owned vitality firm Oil and Pure Fuel Corp (ONGC) is trying to find a ship to move 700,000 barrels of oil from the Far East, Reuters stories citing its sources. The Indian firm began experiencing issues with the transportation of uncooked supplies towards the backdrop of the sanctions that have been imposed on Russia in response to the army operation in Ukraine.

ONGC owns a 20-percent stake in Sakhalin-1 challenge, from the place the Indian firm exports the Russian model of Sokol oil. Oil is often shipped from the De-Kastri terminal on Sovcomflot’s ice-class vessels to South Korea, the place it’s loaded onto tankers earlier than ONGC can promote oil to consumers in North Asia.

• Sovcomflot is Russia’s largest transport firm, one of many international leaders within the maritime transportation of hydrocarbons.

Sanctions have made it tougher for Russian ships, together with these owned by Sovcomflot, to safe navigation insurance coverage protection, Reuters stated. As well as, transport firms are much less prepared to move Russian oil to Asia as a result of fears of potential reputational dangers, the company added. 

In March, ONGC failed to search out consumers for its oil and bought it to Indian state-owned enterprises Hindustan Petroleum Corp and Bharat Petroleum Corp (BPCL). BPCL was supposed to begin shipments in April, however ONGC was unable to discover a ship to move oil to the South Korean port of Yeosu resulting from vessel insurance coverage issues. 

The quantity of crude oil that India has bought from Russia because the starting of the Russian army operation has doubled the quantity bought throughout all the 2021.

In March, Sovcomflot fell below EU sanctions; all transactions with the Russian transport firm have been prohibited. In the identical month, it was reported that Russia had quadrupled its oil provides to India. In April, India’s largest oil firm, Indian Oil Company, refused from Russian uncooked supplies, Reuters stated. The EU known as on India and Asian international locations to assist long-term sanctions towards Russia.