Refiners payback $1.43 billion Iranian debts | business | Hindustan Times
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Refiners payback $1.43 billion Iranian debts

Indian refiners have paid about $1.43 billion through Turkey's Halkbank for Iran oil imports and hope to settle immediately payable debts in the next few days, sources with knowledge of the payment plan said today.

business Updated: Aug 08, 2011 14:20 IST

Indian refiners have paid about $1.43 billion through Turkey's Halkbank for Iran oil imports and hope to settle immediately payable debts in the next few days, sources with knowledge of the payment plan said on Monday.

India, Asia's third-largest economy, used to import about 400,000 barrels per day (bpd) of oil from Iran, but the Reserve Bank of India's move to scrap a previous clearing house at end 2010 led to debts of over $5 billion.

Iran, which had halted August supplies because it had not been paid, has not yet issued a crude supply plan for the month, sources said. Indian companies are first clearing debts whose credit period has expired.

Iran normally sells oil to Indian clients with 90 days credit.

Mangalore Refinery and Petrochemicals Ltd, Iran's biggest Indian client, has paid about one billion euros ($1.42 billion), reducing its debt that had not been paid on time to $1.2 billion, said one of the sources, who all requested anonymity.

"They have not given a firm plan for August supply but they are confirming supplies on a cargo by cargo basis," this source said, referring to supplies to MRPL.

Iran's second biggest Indian customer Essar and state run HPCL have each paid $50 million, cutting debts whose credit period has expired to $1.5 billion and $1.2 billion respectively, the sources said.

IOC, the country's biggest oil refiner but Iran's smallest customer, has paid $20 million, reducing its immediately payable debts to $600 million.