Two Sanctioned VLCCs Each Carrying 2 Million Barrels Of Iranian Oil Anchor Off India After 7-Year Gap
Our take
The recent arrival of two sanctioned Very Large Crude Carriers (VLCCs), each carrying 2 million barrels of Iranian oil, off the coast of India marks a significant moment following a seven-year hiatus in such imports. This development is not only a reflection of shifting geopolitical tides but also underscores the complexities of energy trade in an era marked by sanctions and international scrutiny. As India previously imported over 500,000 barrels per day of Iranian oil until 2019, the resurgence of these shipments invites renewed discussions about the implications of such actions on global energy markets and diplomatic relations, particularly in the context of the ongoing U.S. sanctions. This situation resonates with earlier events, such as when Iranian oil tankers evaded U.S. naval blockades in the Strait of Hormuz, as highlighted in our piece, Iranian Oil Tankers Go Dark To Evade U.S Naval Blockade In Hormuz Strait.
The implications of this renewed trade in Iranian oil extend beyond mere economics; they reflect a broader geopolitical landscape where nations are increasingly willing to navigate complex sanctions regimes. India's decision to engage with Iran amidst U.S. sanctions illustrates a strategic pivot, potentially motivated by its own energy security needs and the desire to diversify its oil sources. Moreover, this situation raises questions about the effectiveness of U.S. sanctions in curbing Iranian oil exports and whether they might inadvertently drive countries like India to strengthen their ties with Tehran. The recent history of oil transportation in this region, including the rare crossings by India-linked tankers despite the blockade, indicates a dynamic environment where energy needs often outweigh geopolitical pressures.
As global energy markets continue to evolve, the arrival of these VLCCs challenges the prevailing narratives about the future of Iranian oil and its role in the international market. The interplay between sanctions, energy dependency, and geopolitical maneuvering will undoubtedly shape the discourse surrounding energy security for countries reliant on oil imports. Furthermore, as seen in the article, Three Oil Tankers Carrying 6 Million Barrels Exit Strait Of Hormuz With Trackers Switched Off, the lengths to which parties will go to ensure the movement of oil amidst threats and sanctions speak volumes about the resilience of global oil trade networks.
Looking ahead, the actions of India in this context will be pivotal. Will India continue to prioritize its energy needs over potential diplomatic repercussions from the West? What does this mean for the future of Iranian oil in the global market, particularly as other nations observe this dynamic? As countries reassess their energy strategies in light of geopolitical realities, the unfolding situation around these VLCCs serves as a critical indicator of how nations may navigate the intersection of energy needs and international diplomacy. The path forward will require careful consideration of the balance between energy security and adherence to international norms, a balance that is increasingly difficult to strike in today’s complex geopolitical landscape.
Two sanctioned very large crude carriers (VLCCs) carrying Iranian oil have anchored off India’s eastern and western coasts, marking the first such arrival near the country in almost seven years, according to ship-tracking data and industry sources.
The vessels, Felicity and Jaya, are each estimated to be carrying around 2 million barrels of crude loaded from Iran’s Kharg Island in February and March.
Their arrival follows a temporary sanctions waiver issued by the United States, allowing the sale of Iranian oil that was already loaded on tankers at sea.
Felicity, operated by the National Iranian Tanker Company, dropped anchor near Sikka on Gujarat’s coast late Sunday. The port serves as a key crude handling hub for refiners including Reliance Industries and Bharat Petroleum Corporation.
Around the same time, Jaya was reported to be moored off Paradip on India’s eastern coast, a major delivery point for Indian Oil Corporation (IOC).
India has not imported Iranian crude since May 2019, after US sanctions on Tehran were tightened. Prior to that, Iran was among India’s largest oil suppliers, contributing up to 11.5% of total imports.
Before imports stopped, India was bringing in over 500,000 barrels per day of Iranian oil, which later fell in 2019 when temporary US waivers were given.
Indian refiners had relied heavily on Iranian light and heavy grades due to their compatibility with domestic refining systems and favourable pricing terms.
The current shipments have been enabled by a one-month waiver issued by the United States in March, permitting transactions involving Iranian crude already in transit.
The measure was aimed at stabilising global oil supply amid disruptions linked to the ongoing conflict in West Asia.
Under this waiver, Indian Oil Corporation is understood to have purchased at least one cargo, though official confirmation of all buyers is not clear. Reliance Industries and Bharat Petroleum are also linked with the Sikka terminal, while IOC operates through Paradip.
According to industry data, Felicity is operated by the National Iranian Tanker Company and is carrying crude loaded at Kharg Island in mid-March.
Jaya, a Curacao-flagged tanker, lifted oil from the same export hub in late February, just before strikes involving the US and Israel in the region.
The ownership of Jaya is listed as unknown in shipping databases, which is common for vessels linked to sanctioned trade routes.
Another tanker, Ping Shun, carrying around 600,000 barrels of Iranian crude, was initially bound for Vadinar in Gujarat but diverted to China mid-voyage due to payment-related issues. If it had reached India, it would have been the first Iranian oil cargo delivered to the country in seven years.
Around 95 million barrels of Iranian oil is currently estimated to be on vessels at sea. Of this, about 51 million barrels could be are considered suitable for Indian refiners, while the rest is likely to go to buyers in China and Southeast Asia.
The arrival of these tankers suggests a cautious and limited re-entry of Iranian crude into India’s supply chain. However, regulatory uncertainty continues to pose risks, particularly as geopolitical tensions escalate.
The US waiver is expected to remain valid only until April 19. At the same time, US President Donald Trump has said he plans to block vessels passing through the Strait of Hormuz after talks with Iran collapsed.
The Strait of Hormuz remains a critical maritime chokepoint, handling a large share of global oil and LNG shipments.
Any disruption to vessel traffic through the route could impact global energy markets and complicate ongoing shipments, including those covered under the current waiver.
India, which depends on imports for more than 88% of its crude oil needs, has diversified its supply sources since 2019, bringing in oil from the Middle East, the United States and Russia.
References: telegraphindia, business-standard
Read on the original site
Open the publisher's page for the full experience
Related Articles
- Iranian Oil Tankers Go Dark To Evade U.S Naval Blockade In Hormuz StraitTwo Iranian VLCCs evaded the U.S naval blockade of Iranian ports and sailed out of the Persian Gulf, carrying a combined 4 million barrels of oil.
- India-Linked LPG Tanker Carrying 45,000 Tonnes Makes Rare Hormuz Crossing Amid U.S. BlockadeThis is the first known transit by an India-linked tanker since the blockade began weeks ago and reduced crossings through the strait.
- Three Oil Tankers Carrying 6 Million Barrels Exit Strait Of Hormuz With Trackers Switched OffThe vessels reportedly disabled their trackers to avoid possible Iranian attacks as companies continue moving crude exports out of the Gulf.