India’s shipping ministry has approved special permission for four vessels carrying Iranian oil, as requested by Reliance Industries, to dock at the western port of Sikka, according to three industry sources. India, ranking as the world’s third-largest oil importer and consumer, has not received any shipments from Tehran since May 2019 due to US pressure against purchasing Iranian crude. However, the US recently granted a temporary waiver on sanctions for the acquisition of Iranian oil at sea to alleviate oil prices. The waiver is set to expire on April 19.
Iranian oil is commonly transported by a fleet of vessels lacking international insurance and safety certifications. Therefore, special government permission is needed, as exemptions are essential under Indian regulations for ship berthing. The shipping ministry has granted a special one-time exemption to vessels requested by Reliance, operator of the world’s largest refining complex, citing the emergency situation arising from the closure of the Strait of Hormuz.
Among the vessels granted permission are the Comoros-flagged aframax Kaviz and Curacao-flagged very large crude carrier (VLCC) Lenore, as well as the Iran-flagged VLCCs Felicity and Hedy. These four US-sanctioned vessels are all over 20 years old, with each VLCC capable of transporting up to 2 million barrels of oil.
India typically mandates that tankers over 20 years old possess seaworthiness certification from a member of the International Association of Classification Societies or an entity authorized by India’s maritime administration. The Hedy has been stationed near Chabahar port since April 1, while the Felicity was observed near Chabahar from April 3, based on analysis from the US advocacy group United Against Nuclear Iran. The Kaviz left the Gulf on Thursday, and the Lenore loaded crude from Iran’s Kharg Island on March 20, as noted by UANI senior adviser Charlie Brown.
Despite the permission granted, there is uncertainty whether Reliance will process Iranian oil, as it aims to ensure that transactions comply with sanctions and Indian regulations. Indian Oil Corp, the leading refiner in the country, has acquired Iranian oil from the sanctioned tanker Jaya, as indicated by ship tracking data.