Iran: Reliance Resumes Fuel Supplies
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Tuesday, 29 July 2008 |
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Reliance Industries has resumed fuel
supplies to Iran after halting it in the last quarter of 2007
over credit issues, trade sources familiar with the deal said.
Reliance halted selling fuel to Iran last year after French banks BNP Paribas and
Calyon stopped offering credit on the deals, succumbing to pressure
from Western nations that believe Tehran is trying to develop nuclear
weapons.
The new deal is sealed ahead of Reliance's upcoming
580,000 barrels per day (bpd) refinery, which along with the company's
existing plant will make Jamnagar in Gujarat the world's biggest oil
complex processing about 1.24 million bpd.
"Reliance has sold two cargoes of 35,000 tonnes to
Iran in July. What we know is that the deal with Iran is contracted up to
December 2008 with two to three cargoes a month," said an India-based
trader.
A Singapore-based trader also confirmed the timing and
size of the deal. He said the prices were linked to Middle East spot
quotes for naphtha and the deal was in exchange for crude purchased by
Reliance from the Islamic Republic.
Trade sources said until last
financial year ending April Reliance was seen buying around five to six
million tonnes of Iranian crude mainly Souroush and Nowruz. But the
quantities might have gone up now as the refiner seeks to lock supplies
for its new unit.
PetrolWorld 280708
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