Following the U.S. government's announcement that it would reinstate sanctions on Iran after having withdrawn from the 2015 Iran nuclear pact, the operator of the world's largest petroleum refinery said it would stop importing oil from the Middle Eastern country, Reuters reported, citing unnamed sources.
Sources at Reliance Industries Ltd, which owns the 1.4 million barrel-per-day Jamnagar refinery in India, said the company would end Iranian oil imports by October or November but would move to phase out purchases more quickly if European efforts to salvage the Iran nuclear deal were to fall apart.
The U.S. Department of the Treasury is giving businesses with existing energy contracts until Nov. 4 to wind down business with Iran. While India does not follow U.S. sanctions policy, companies that have business ties with the U.S. often comply with U.S. sanctions policy in order to avoid penalties.
In the U.S., Reliance has a 45% working interest partnership with Pioneer Natural Resources Co. in the Eagle Ford shale play in South Texas, as well as a 40% working interest partnership with Chevron Corp. and a 60% working interest partnership with Carrizo Oil & Gas Inc. in the Marcellus Shale play that extends throughout much of the Appalachian basin.
