Bharat Petroleum Corporation Ltd. (BPCL)

India

Date: August 2007 - Ongoing

Deal: PressTV reported that BPCL and the National Iranian Oil Company (NIOC) were planning to sign a four month crude oil deal for the end of 2007. This was BPCL’s first contract to purchase Iranian oil (PressTV, August 29, 2007).

According to Reuters, the deal netted BPCL 0.5 million metric tons of crude between September and December, which is roughly 30,000 barrels per day (bpd) (Reuters, August 29, 2007).

In June 2009, Reuters reported that BPCL was planning on continuing its contract to purchase 250,000 metric tons of Iranian oil for FY2009 - 2010 (Reuters, June 9, 2009).

Reuters reported in July 2011 that BPCL had secured an annual oil deal to buy 20,000 bpd from Iran (Reuters, July 21, 2011). This contract was ongoing as of May 2012, according to Bloomberg. However, BPCL has continued to have difficulties making payments for the oil due to sanctions (Bloomberg, May 3, 2012). It has been reported that BPCL has not received Iranian oil since February as it was unable to open an account with Turkey's Halkbank, which is used by other Indian refiners to purchase Iranian oil (Reuters, October 13, 2012).

By June 2012, Reuters reported that BPCL settled outstanding payments to Tehran for oil shipments received during FY2011. The payments, amounting to nearly $490 million, were the first to be made in rupees in an effort to avoid tightening Western sanctions (Reuters, June 19, 2012).      

In October 2012, Reuters reported that BPCL had been unable to receive Iranian crude since February 2012 due to their inability to use Turkey's Halkbank to pay for its oil purchases (Reuters, October, 13, 2012).      

According to The Wall Street Journal in November 2013, BPCL had not purchased Iranian crude since April 2013 (The Wall Street Journal, November 8, 2013).                                                                                         

Ties to U.S. Business: According to USASpending.gov, Bharat Petroleum Corporation Ltd. has received $69,665 in U.S. State Department contracts and purchase orders in 2002 and 2006 (USAspending.gov, accessed November 30, 2012).

Last Updated: July 7, 2014