Iranian Oil Minister Mohsen Paknejad is visiting India to attend the 11th BRICS Energy Ministers' Meeting, where energy cooperation and sustainable development will be key topics. The visit comes amid expectations that Iranian oil exports to India could resume if sanctions relief progresses.
Before U.S. sanctions were reimposed in 2019, India was Iran's second-largest crude oil customer after China, importing about 620,000 bpd in 2018, equivalent to around 11.5% of India's total crude imports.
Iran's ambassador to India stated that sanctions relief could not only revive Iranian oil exports to India but also expand bilateral trade beyond previous peak levels. The National Iranian Oil Company (NIOC) has reportedly begun contacting Indian refiners and traders, while approximately 68 million barrels of Iranian crude and condensate are said to be available for rapid delivery.
Indian refiners appear interested in resuming purchases due to their historical experience processing Iranian crude grades, favorable freight economics, and previously extended credit terms. Industry sources indicate refiners are preparing for the potential return of Iranian barrels.
During his visit, Paknejad is expected to meet Hardeep Singh Puri to discuss cooperation in oil, gas, refining, and petrochemicals, alongside meetings with other BRICS energy ministers.