India’s Mangalore Refinery and Petrochemical’s (MRPL) shares rose 5% this week in Mumbai on news that it has completed the first transaction with Iran for purchase of 85,000 metric tons of crude.
MRPL received the crude shipment on August 17, as confirmed by P.P. Upadhya, managing director of the refiner.
He said there will be at least three more shipments.
Last week, Iran’s Revolutionary Guards detained an Indian oil tanker carrying Iraqi crude oil. The oil tanker “MT Desh Shanti” was reported to be stopped in international waters and forced into the Iranian port of Bandar Abbas.
MRPL is a subsidiary of state-owned ONGC.
India’s Finance Minister, Palaniappan Chidambaram, announced plans earlier this month to import Iranian crude without violating UN sanctions.
Rajiv Takru, the Financial Services Secretary, said India will be structuring a INR 20 billion insurance fund to protect future crude imports from Iran by Indian refineries. The insurance fund will be managed by General Insurance Co.