Chennai Petroleum Corporation Ltd. (India)

 

 

 

According to its website, Chennai Petroleum Corporation Limited (CPCL) was established as a joint venture in 1965 between the Government of India (GOI), holding 74 percent, AMOCO and the National Iranian Oil Company (NIOC) each holding 13 percent. AMOCO pulled out of the investment in 1985 leaving India with 84.62 percent and NIOC with 15.38 of the company’s shares. NIOC later transferred its holdings in Chennai to subsidiary Naftiran Intertrade Company Limited (NICO) in July 2003 (Chennai Petroleum Corporation Limited Website, accessed February 20, 2013).

NIOC was designated by the U.S. Department of the Treasury on November 26, 2008, for being wholly owned or controlled by the government of Iran (U.S. Department of the Treasury, November 26, 2008).

NICO was similarly designated by the U.S. Department of the Treasury on November 26, 2008, for being wholly owned or controlled by the government of Iran (U.S. Department of the Treasury, November 26, 2008).

CPCL operates two refineries in India which have imported Iranian crude oil.

According to Reuters, Chennai Petroleum Corporation Ltd. would not process Iranian oil in 2012 and 2013 due to lack of insurance. “Chennai Petroleum was [originally] planning to process about 5,000 bpd of Iranian oil in 2012/13 compared with 8,000 bpd in 2011/12. It has increased imports of Arab Mix, Basrah and Upper Zakum as substitutes” (Reuters, October 23, 2012).

U.S. and EU sanctions against Iran caused reinsurers to deny coverage to 15 percent of Chennai Petroleum Corporation’s assets due to Iranian interests in the company, according to the Indian press (The Economic Times, February 26, 2013).

According to Bloomberg, Chennai Petroleum Corporation Ltd. will not buy Iranian crude in 2014 and will continue to defer purchasing Iranian oil as long as reinsurance continues to be an issue (Bloomberg, January 7, 2014).

Ties to U.S. Business: According to USASpending.gov, Chennai Petroleum Corporation Limited has not received any U.S. government contracts (USASpending.gov, accessed February 20, 2013).

Last Updated: July 7, 2014