MRPL hopeful of payments row resolution with Iran

New Delhi: ONGC Group company, Mangalore Refinery & Petrochemicals (MRPL), the country's biggest buyer of Iranian crude, today said it owed $2.9 billion to the Persian Gulf nation by way of outstanding fuel bills.

"The total outstanding [towards Iran] is $2.9 billion. But not all of this is due for payment now as Iran gives us 90-day credit. Only $1.9 billion is payable immediately," MRPL managing director UK Basu let it be known.

MRPL has an annual contract to import 7.1 million tonne (142,000 barrels per day) of crude oil from Iran.

Along with other Indian refiners processing Iranian crude, MRPL too has not able to pay for the oil it buys as India's central banker, the Reserve Bank of India (RBI) barred transactions through a regional clearing platform, the Asian Clearing Union on 23 December under US pressure.

India's owes Iran a total of $7 billion by now for supplies of crude which average 400,000 barrels per day (bpd). Iran and India have failed to secure a smooth mode of transaction so far, particularly after transactions through a Germany-based bank were also blocked under US pressure.

Industry sources say Essar Oil, the second-biggest importer of Iranian crude oil, imports about 110,000 bpd and owes the Iranians $2.5-2.6 billion while other refiners, the Hindustan Petroleum (HPCL) and Indian Oil Corporation (IOC) would have $1.5-2 billion outstanding in dues.