A recent vessel tracking report indicates that an Iranian oil tanker has successfully reached the anchorage at Gujarat’s Sikka port, following the arrival of another tanker loaded with Iranian crude oil off the coast of Paradip in Odisha. This marks the first instance of Iranian crude being delivered to Indian ports in nearly seven years, coinciding with a sanctions waiver issued by the United States last month. This temporary waiver, valid for one month, was designed to facilitate the sale of Iranian oil already in transit, aiming to mitigate global supply disruptions and stabilize oil prices. However, following unsuccessful peace negotiations over the weekend, the US has initiated a blockade of Iranian ports to limit Tehran’s oil export revenues.
The Very Large Crude Carrier (VLCC) named Felicity anchored near Sikka port late on Sunday, as reported by vessel tracking data. This tanker, which operates under the Iranian flag and is managed by the National Iranian Tanker Company (NITC), was confirmed to be at the Sikka anchorage by MarineTraffic at 10 am on Monday. Industry sources suggest that Felicity may be carrying approximately 2 million barrels of Iranian oil intended for Reliance Industries Limited (RIL), a major player in the private refining sector. The company has not yet responded to inquiries regarding this shipment.
Felicity follows the Jaya, a Curacao-flagged VLCC that arrived off the Paradip port a few days prior, also carrying an estimated 2 million barrels of Iranian crude for the Indian Oil Corporation (IOC), a state-owned refiner. Both tankers, which have faced US sanctions, loaded their cargoes at Iran’s primary oil export facility, Kharg Island. Jaya is believed to have been loaded in late February, shortly before US and Israeli military actions against Iran commenced, while Felicity is estimated to have taken on its cargo around mid-March.
A recent report from Reuters highlighted that India’s shipping ministry granted special authorization for four tankers, including Felicity, to dock at Sikka port. Experts predict that additional shipments of Iranian crude may arrive in India in the coming days, ahead of the expiration of the US waiver for Iranian oil purchases on April 19.
Earlier, the Indian government confirmed its ongoing acquisition of Iranian crude, stating that there are no financial obstacles to purchasing oil from Tehran following the waiver. The Petroleum Ministry emphasized that India sources crude oil from over 40 countries, allowing companies to make sourcing decisions based on commercial factors. Amid disruptions in Middle Eastern oil supply, Indian refiners have successfully secured their crude oil needs, including imports from Iran, with no reported payment issues. The ministry also announced that a tanker carrying Iranian liquefied petroleum gas (LPG) is currently unloading at New Mangalore port.
In the context of the ongoing conflict in West Asia, the US suspended sanctions on Iranian crude already loaded onto tankers for a month, starting March 21, to facilitate the flow of oil into the international market and alleviate rising crude prices. This waiver mirrors a similar measure taken for Russian oil earlier in March, with India’s imports of Russian oil significantly increasing since the onset of the conflict. Notably, India has not imported Iranian crude since May 2019, following the reinstatement of US sanctions under the previous Trump administration.
The US Department of the Treasury’s Office of Foreign Assets Control issued a general license on March 21, authorizing transactions related to the sale, delivery, or offloading of Iranian-origin crude oil and petroleum products loaded on any vessels, including those under US sanctions, as of March 20.
Despite the conflict that erupted on February 28, which effectively halted vessel movements through the Strait of Hormuz, Iranian oil shipments have largely continued. The Strait is crucial, accounting for approximately 20% of global oil and liquefied natural gas flows. Recent months have seen around 2.5 to 2.7 million barrels per day of India’s crude imports transit through the Strait, which represents nearly half of the country’s total oil imports, while the long-term average is around 40%. India relies on imports to fulfill over 88% of its crude oil needs.
Sukalp Sharma serves as a Deputy Associate Editor at The Indian Express, focusing on various topics including energy and aviation. With over 16 years of experience in journalism, his work encompasses politics, economic policy, corporate affairs, and more. He also has a passion for photography and travel.
