IOC to pay Iranian vessels in euro for oil imports

Indian Oil Corporation (IOC) will pay in euro rather than in dollars for oil imports using Iranian vessels under a clause introduced in its latest crude buy tender, reports quoting oil industry sources said today.

State-run IOC will have to pay in euro by telegraphic transfers without recourse to letter of credit as per normal trade credit period of 30 days in the event it uses an Iranian vessel for import of the cargo, the report said.

IOC usually makes payments in dollars for crude cargoes shipped in Iranian vessels and reveal details of the vessels to US bankers.

Iran, the world's fifth-largest oil exporter, is under US and UN sanctions over its disputed nuclear programme and IOC meets one to two per cent of its vessel requirements through Iranian ships.

Payment in dollar means that it somehow gets blocked and Iran is keen that the US embargo does not affect its trading with other nations and hence the new clause incorporating payment in euro.

In its new tender, IOC has sought sweet barrels for March lifting. The tender closes on Tuesday and bids remain valid until Wednesday.

IOC is India's largest oil marketing company by sales with a turnover of Rs285,337 crore and profit of Rs2,950 crore for fiscal 2008-09.

IndianOil is also the highest ranked Indian company in the prestigious Fortune 'Global 500' listing, having moved up 19 places to the 116th position in 2008. It is also the 18th largest petroleum company in the world. IndianOil's vision is driven by a group of dynamic leaders who have made it a name to reckon with.