Iran Set to Lose Oil Market Share in India as Rosneft Elbows In

[LaaL]

Iran’s biggest oil buyer in India is ready to throttle back imports from the Persian Gulf nation once a new supply deal kicks in.

Essar Oil Ltd. expects to lower purchases from Iran after shipments from OAO Rosneft begin once the Russian state producer completes a deal to buy a stake in the Indian company, according to Lalit Kumar Gupta, Essar Oil’s chief executive officer. The refiner doesn’t plan to import any crude under the agreement this year and it’s undecided which country or project Rosneft will source the crude from, he said.

QUICKTAKEIran and Its Oil


“When they are on board we will see how much to buy, what to buy” from Rosneft, Gupta said in an interview. The company will buy less from Iran when the supplies begin, he said.

Essar bought more than 148,000 barrels a day from Iran in the first six months of this year, accounting for more than 40 percent of the country’s purchases from the Persian Gulf nation, according to shipping data obtained by Bloomberg. The company gets about one-third of the crude it needs for its 20 million-tons-a-year refinery from Iran, Gupta said.

The international affairs office in Tehran of National Iranian Oil Co., the state producer, wasn’t able to comment. India is Iran’s biggest oil buyer after China, according to the shipping data.

Market Share
Rising supply under the Rosneft deal complicates Iran’s efforts to hold on to its expanded market share in Asia, particularly in India, where the International Energy Agency expects demand growth in the decades ahead to outstrip all other nations. Iranian shipments to India surged 63 percent in the first half of the year after international sanctions that restricted its supplies were eased in January.


At nearly 403,000 barrels a day, Iran was India’s fourth-biggest supplier in the April-June period, trailing Iraq, Saudi Arabia and Venezuela, according to data from the Indian oil ministry. India isn’t a regular buyer of Russian crude and supplies during the quarter were about 8,000 barrels a day.



10 millionmetric tons of crude a year, or about 200,000 barrels a day, for Essar’s Vadinar refinery in the western state of Gujarat. It never specified where the crude would be sourced from.


Gupta declined to comment on when the deal could be finalized or on the value of Rosneft’s stake, saying the owners of the family-controlled company are in charge of negotiations with Rosneft. Essar Oil, when it delisted from the Bombay Stock Exchange in December, had a market capitalization of about 380 billion rupees ($5.7 billion).
elbows-in
Source bloomberg

 

[Zibago]

@django

 

[Director General]

Essar is a private company, and they will buy whoever gives them better terms.Russian Rosneft offered a cheaper deal so they went with it.

 

[SOHEIL]

 

[django]

@django

The hindian will buy from wherever they can get the best deal, perhaps this will wake the Iranians up.Kudos

 

[Cherokee]

The hindian will buy from wherever they can get the best deal, perhaps this will wake the Iranians up.Kudos

Wake up to what . Iranians are pragmatic business nation just like us . We don't go around singing songs of our higher than everest and deeper than Mariana Trench Friendship . Both our Interests are aligned and Oil is/will not be the only thing binding two nations . Lot more cooperation is in tow . Wait and watch this space .

 

[neem456]

The hindian will buy from wherever they can get the best deal, perhaps this will wake the Iranians up.Kudos

Wake up to what ?
With your primitive thinking you will go no where. You need to understand business is a business, and how it should be run keeping emotions aside.
Btw, does pakistan buys all its oil energy needs from iran ? NO ? Then by your logic they need to wake up to this reality as well.

 

[Desist]

Essar is a private company, and they will buy whoever gives them better terms.Russian Rosneft offered a cheaper deal so they went with it.

Roseneft is buying a stake in Essar, so it is likely that this will also sway decision making somewhat other than commercial considerations for the company.

The hindian will buy from wherever they can get the best deal, perhaps this will wake the Iranians up.Kudos

Even amongst those with very low IQ, you stand out as being the 1 percentiler. Its a private company. They take commercial decisions.

These things may be hard for you to understand considering that Pakistan has no economy and no concept of companies.

 

[django]

Even amongst those with very low IQ, you stand out as being the 1 percentiler. Its a private company. They take commercial decisions.

These things may be hard for you to understand considering that Pakistan has no economy and no concept of companies.

hey desist from your insults they carry no merit.

 

[[Bregs]]

Essar may reduce its oil imports from Iran because of Russian stake in it but Iran will never loose its share in idian oil market in broader perspective, they did not loose Indian share at the height of sanctions too

 

[SrNair]

I hopes Iran will show an aggressive competition to maintain their share in our market .After all this is a business

On topic:Essar is a private company and Rosneft are buying a fair share .
Private companies only cares profit.