Indian Oil Corp (IOC.NS), the country’s largest refiner, said Thursday it would resume purchasing Iranian oil if Washington lifts sanctions on Tehran for its contested nuclear program.

The European Union official leading talks to revive the Iran nuclear deal said on Wednesday he was confident a deal would be reached as negotiations adjourned, although EU diplomats said success did not was not guaranteed with very difficult questions outstanding. Read more[[[[

“We were buying Iranian crude earlier before the sanctions, and I have no doubt why we won’t buy Iranian crude because it favors the Indian refining system if the sanctions are lifted,” said SK Gupta, chief financial officer. at the IOC. analyst call.

“So we will definitely buy it.”

India, the world’s third-largest consumer and importer of oil, suspended oil imports from Tehran in 2019 because a temporary exemption granted to some countries expired. Former US President Donald Trump abandoned the 2015 Iran nuclear deal in 2018 and reimposed sanctions.

The administration of US President Joe Biden and Iran have entered into indirect talks to revive the pact for Tehran to curb its nuclear activities in exchange for a lifting of sanctions.

Indian refiners plan to replace some of their cash purchases with Iranian oil in the second half of this year, as the United States and Iran move closer to a deal. Read more

“The supplies from Iran will bring an additional balance to the market, which will help consuming countries,” said MK Surana, chairman of the state-owned Hindustan Petroleum Corp (HPCL.NS).

He said HPCL will also consider buying Iranian oil if sanctions are lifted and hopes Iran will continue to offer discounts on crude and shipments.

“It is always on the basis of mutual negotiation between the parties involved. In the past, Iranian suppliers have given us better payment terms, freight terms and the same is expected to be definitely available, “he said at a press conference.

Gupta also said the IOC may continue to reduce refinery crude cycles until the end of this month.

The refiner, which was operating its factories at 96% capacity in April, has cut throughput to 84% on average, with lockdowns aimed at reducing cases of COVID-19 hitting industrial operations and fuel consumption.

He said refining margins and demand for fuel are expected to recover due to the vaccination campaign being undertaken across the world to curb the spread of coronavirus infections.

Our standards: Thomson Reuters Trust Principles.