India's MRPL has got a crude cargo insured by an Iranian firm, the first state refiner to do so, after local firms refused cover even before European Union sanctions barring such deals start in July, sources with knowledge of the matter said.
Mangalore Refinery and Petrochemicals (MRPL) "recently got a cargo insured by an Iranian firm and other cargoes can also be insured from Iran. The company will do that on a case-by-case basis," said one of the sources.
The sources declined to be named due to the sensitivity of the subject.
The United States and European Union are trying to squeeze the revenues Iran makes from its oil exports to force it to halt a nuclear programme they fear will be used to make weapons. Tehran says it needs the technology for power generation.
China, Japan, South Korea and India are the main buyers of Iran's 2.2 million barrels per day (bpd) of exports. All have made steep cuts in imports this year against a backdrop of rising international pressure on Tehran.
MRPL is one of the major Indian clients of Iran's oil and its insurance policy with New India Assurance Co Ltd for cargoes lapsed earlier this month.
Source: Reuters