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Essar Raises Venezuela Oil Imports at Iran's Expense

Essar Raises Venezuela Oil Imports at Iran's ExpenseEssar Raises Venezuela Oil Imports at Iran's Expense

Indian private refiner Essar Oil's imports from Iran fell by three-quarters in August from a year ago, as it boosted purchases from Venezuela, according to tanker arrival data obtained from trade sources and ship-tracking services on the Thomson Reuters terminal.

Russian oil major Rosneft and its partners, including global trader Trafigura and Russian fund UCP, closed the $12.9 billion deal to acquire a 98.3% stake in Essar Oil last month.

Russia's Rosneft, which has stakes in Venezuelan upstream assets and oil purchase contracts with state-owned PDVSA, planned to supply Venezuelan oil to the 400,000-bpd Vadinar refinery in western India, Reuters reported last year.

Essar shipped in 60,800 barrels per day of oil from Iran in August, a drop of about 60% from July, the data showed.

In contrast, its Venezuelan imports more than doubled to about 172,000 bpd from about 63,000 bpd in July and about 67,000 bpd a year ago, the data showed. In the first eight months of the year, the refiner received 18% less oil from Iran at about 140,000 bpd, the data showed.

India imported 335,400 barrels per day of oil from Iran in August, the lowest level since February 2016, posting a fall of about 42% from a year ago, according to a Reuters report.

August imports from Iran were down 19.2% compared with July, the data showed, as the world's third largest oil importer is reducing intake of Iranian oil in retaliation to Tehran's decision to award a giant gas field to a Russian company, Economic Times reported.

 

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