Lok Sabha Question No. 71 (STARRED), answered on 2018-07-23
Subject: Import of Crude Oil from Iran
Ministry: PETROLEUM AND NATURAL GAS
Asked by: SUPRIYA SADANAND SULE, RAMACHANDRAN MULLAPPALLY

## LOK SABHA STARRED QUESTION NO.71 TO BE ANSWERED ON 23 RD  JULY, 2018

## Import of Crude Oil from Iran

## *71. SHRIMATI SUPRIYA SULE: SHRI MULLAPPALLY RAMACHANDRAN:

## पेट्रोलियम और प्राक ृ लिक गैस मंत्री

## Will the Minister of PETROLEUM AND NATURAL GAS be pleased to state:

- (a)  the  quantum  of  crude  oil  imported  from  Iran  during  the  last  two  years  and  the  current year  and  the  expenditure  incurred  in  terms  of  rupee/dollar    thereon  as  compared  to  other Middle-East countries, volume/value/country-wise;
- (b) whether the Government has asked the refiners to prepare for a drastic reduction or zero imports of Iranian oil from November this year on the call by the United States of America to all  nations  for  curtailing  trade  ties/stop  crude  oil  import  from  Iran  and  if  so,  the  details thereof;
- (c) whether the Government has asked the refiners to find out alternative to Iranian oil and ensure energy security and also initiated negotiation with other countries for import of crude oil in the wake/event of restricted trade ties with Iran and if so, the details thereof;
- (d) whether the crude oil procured/proposed to be procured from alternative  countries will be available in the same price as is available from Iran and if so, the details thereof; and
- (e) the other steps taken to increase the production of crude  oil and petroleum products to meet  the  domestic  demands  and  increase  the  export  of  petroleum  products  to  make  the country  zero  import  dependent/self-reliant  and  develop  alternative  fuel  economy  in  the country including leasing out of potential crude oil wells to private companies?

## ANSWER

## पेट्रोलियम और प्राक ृ लिक गैस मंत्री ( श्री धमेंद्र प्रधान )

## MINISTER PETROLEUM & NATURAL GAS (SHRI DHARMENDRA PRADHAN)

(a) to (e) A statement is laid on the Table of the House.

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## STATEMENT REFERRED TO IN THE REPLY TO PARTS (a) TO (e) OF THE LOK SABHA  STARRED  QUESTION  NO.71  BY  SHRIMATI  SUPRIYA  SULE  &  SHRI MULLAPPALLY RAMACHANDRAN TO BE ANSWERED ON 23.07.2018 REGARDING 'IMPORT OF CRUDE OIL FROM IRAN'

- (a) The details of crude oil imported from Iran and other Middle-East countries by the Public Sector Oil Marketing Companies (OMCs) during the last two years and the current year are given below:-

| Country      | 2016-17        | 2016-17           | 2016-17              | 2017-18        | 2017-18           | 2017-18              | 2018-19 (upto June'18)   | 2018-19 (upto June'18)   | 2018-19 (upto June'18)   |
|--------------|----------------|-------------------|----------------------|----------------|-------------------|----------------------|--------------------------|--------------------------|--------------------------|
|              | Quantity inMMT | Value in Rs Crore | Value in USD Million | Quantity inMMT | Value in Rs Crore | Value in USD Million | Quantity inMMT           | Value in Rs Crore        | Value in USD Million     |
| Iran         | 13.04          | 29270.03          | 4384.6               | 9.8            | 25065.68          | 3882.82              | 5.67                     | 19978.46                 | 2953.7                   |
| Iraq         | 24.79          | 51142.78          | 7672.59              | 29.66          | 74291.21          | 11471.64             | 7.27                     | 24279.9                  | 3575.56                  |
| Kuwait       | 7.93           | 17244.92          | 2579.69              | 11.37          | 29539.28          | 4584.22              | 2.81                     | 9676.72                  | 1438.71                  |
| Qatar        | 0.9            | 2237              | 335                  | 0.9            | 2564              | 398                  | 0.1                      | 514                      | 76                       |
| Saudi Arabia | 18.01          | 41985.37          | 6267.98              | 19.35          | 51425.67          | 7975.43              | 5.22                     | 19005.47                 | 2804.69                  |
| UAE          | 11.96          | 29599.52          | 4421.48              | 9.95           | 26878.96          | 4171.05              | 2.8                      | 10599.75                 | 1569.21                  |
| Oman         | -              | -                 | -                    | 1.9            | 5318.45           | 829.4                | -                        | -                        | -                        |
| Bahrain      | -              | -                 | -                    | 0.28           | 711.47            | 111.38               | -                        | -                        | -                        |

Source: Public Sector OMCs

All values rounded of upto two places of decimal.

- (b) On  8 th May  2018,  the  USA  announced  that  it is walking  out of the Joint Comprehensive  Plan  of  Action  with  Iran  and  released  a  Frequently  Asked  Questions regarding the re- imposition of sanctions on entities engaged with Iran, including import of crude oil from Iran.
- (c) Indian refineries import crude oil from diverse sources including Iran, depending on technical and commercial considerations.
- (d) Oil  PSUs  import  crude  oil  mainly  keeping  in  view  the  domestic  requirement.  The price of crude oil is determined by many factors, including quality and demand and supply in the global market.
- (e) The policy initiatives taken by the Government to enhance domestic production of oil and gas include:-
- (i) Policy  for  Relaxations,  Extensions  and  clarifications  under  Production  Sharing Contract (PSC) regime for early monetization of hydrocarbon Discoveries, 2014.
- (ii) Policy on Testing Requirements, 2015.
- (iii) Discovered Small Field Policy, 2015.
- (iv) Hydrocarbon Exploration and Licensing Policy, 2016.
- (v) Policy for Extension of Production Sharing Contracts, 2016.
- (vi) Policy for early monetization of Coal Bed Methane.
- (vii) Setting up of National Data Repository, 2017.
- (viii) Appraisal of Unappraised areas in Sedimentary Basins.
- (ix) Re-assessment of Hydrocarbon Resources.
- (x) Streamlining  the  working  of  Production  Sharing  Contracts  in  respect  of  Pre-NELP and NELP Blocks.

The steps taken by the Government to achieve the goal of reducing the dependency on import in energy from oil and gas include:

- (i) Increasing domestic production of oil and gas;
- (ii) Promoting energy efficiency and conservation measures;
- (iii) Giving thrust on demand substitution;
- (iv) Capitalizing untapped potential in bio-fuels and other alternate fuels/renewable and;
- (v) Implementing measures for refinery process improvements.

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