The MRPL refinery in the Indian state of Mangalore. (File photo)[/caption]NEW DELHI, March 2 (Reuters) -Indiaslashed its Iranian oil imports in February to a 1-1/2-year low to keep annual volumes from Tehran near the previous fiscal year's levels and within the limits allowed under a deal aimed at curtailing the OPEC nation's nuclear programme.
India, Iran's top client afterChina, shipped in about 102,200 barrels per day (bpd) of crude and condensate from Tehran in February, the lowest since July 2013, and down 63 percent from January and 62 percent from a year ago, according to tanker arrival data from trade sources and ship tracking services on the Thomson Reuters terminal.
The cuts follow smaller but still sharp reductions in January. The two months of lower shipments came after New Delhi instructed Mangalore Refinery and Petrochemicals Ltd, Essar Oil and Indian Oil Corp to "virtually halt" Iranian oil imports in February-March.
Refiners inIndiahad raised imports during April-December - the first nine months of this fiscal year - by more than 40 percent, leading U.S. authorities to raise an alarm with India's foreign ministry ahead of PresidentBarackObama'svisit to New Delhi in January, a source involved in the talks said.
New Delhi wants to keep its average oil imports fromIranat 210,000-220,000 bpd or about 11 million tonnes in the year to March 31, 2015, to meet the terms of a temporary deal that asks buyer nations to retain purchases from Tehran at 2013 levels.
The deal brokered by six world powers andIranin November 2013 eased some sanctions on Tehran in exchange for curbs to the Islamic republic's nuclear programme, capping its oil exports at around 1 million-1.1 million bpd.
The powers - the United States,Russia,China, Britain,FranceandGermany- are now working withIrantowards a final agreement on sanctions and its disputed uranium enrichment activities, aiming to reach a political understanding by the end of March and a lasting agreement by a June 30 deadline. Two earlier deadlines have been missed.
The West is worried that Iran's nuclear activities are aimed at making a weapon. Tehran says its uranium enrichment programme is only for power generation.
Over April-February India's oil imports fromIranaveraged about 240,000 bpd, or nearly 11 million tonnes, leaving little room for further imports in March.
The April-February imports fromIranwere up 16 percent compared with 206,800 bpd imported in the same period of the previous fiscal year, the data showed.
"So far there are no cargoes booked fromIranor Dalian inChinafor voyage toIndia(for March arrivals)," a trade source said.Iranhas leased oil storage at Dalian inChinafrom which it can supply regional clients.
MRPL had to buy additional oil from Kuwait andSaudi Arabiafor February and March to make up for the reduced Iranian oil imports, said an industry source.
MRPL has also booked Iraq's Basra light for March loading from spot markets to replace crude fromIran.
MRPL's managing director H. Kumar declined to comment on any additional purchases from Kuwait andSaudi Arabia.
By Reuters
