Two Sanctioned VLCCs Each Carrying 2 Million Barrels Of Iranian Oil Anchor Off India After 7-Year Gap

Two sanctioned very large crude carriers (VLCCs) carrying Iranian oil have anchored off India’s eastern and western coasts, marking the first such arrival near the country in almost seven years, according to ship-tracking data and industry sources.

The vessels, Felicity and Jaya, are each estimated to be carrying around 2 million barrels of crude loaded from Iran’s Kharg Island in February and March.

Their arrival follows a temporary sanctions waiver issued by the United States, allowing the sale of Iranian oil that was already loaded on tankers at sea.

Felicity, operated by the National Iranian Tanker Company, dropped anchor near Sikka on Gujarat’s coast late Sunday. The port serves as a key crude handling hub for refiners including Reliance Industries and Bharat Petroleum Corporation.

Around the same time, Jaya was reported to be moored off Paradip on India’s eastern coast, a major delivery point for Indian Oil Corporation (IOC).

India has not imported Iranian crude since May 2019, after US sanctions on Tehran were tightened. Prior to that, Iran was among India’s largest oil suppliers, contributing up to 11.5% of total imports.

Before imports stopped, India was bringing in over 500,000 barrels per day of Iranian oil, which later fell in 2019 when temporary US waivers were given.

Indian refiners had relied heavily on Iranian light and heavy grades due to their compatibility with domestic refining systems and favourable pricing terms.

The current shipments have been enabled by a one-month waiver issued by the United States in March, permitting transactions involving Iranian crude already in transit.

The measure was aimed at stabilising global oil supply amid disruptions linked to the ongoing conflict in West Asia.

Under this waiver, Indian Oil Corporation is understood to have purchased at least one cargo, though official confirmation of all buyers is not clear. Reliance Industries and Bharat Petroleum are also linked with the Sikka terminal, while IOC operates through Paradip.

According to industry data, Felicity is operated by the National Iranian Tanker Company and is carrying crude loaded at Kharg Island in mid-March.

Jaya, a Curacao-flagged tanker, lifted oil from the same export hub in late February, just before strikes involving the US and Israel in the region.

The ownership of Jaya is listed as unknown in shipping databases, which is common for vessels linked to sanctioned trade routes.

Another tanker, Ping Shun, carrying around 600,000 barrels of Iranian crude, was initially bound for Vadinar in Gujarat but diverted to China mid-voyage due to payment-related issues. If it had reached India, it would have been the first Iranian oil cargo delivered to the country in seven years.

Around 95 million barrels of Iranian oil is currently estimated to be on vessels at sea. Of this, about 51 million barrels could be are considered suitable for Indian refiners, while the rest is likely to go to buyers in China and Southeast Asia.

The arrival of these tankers suggests a cautious and limited re-entry of Iranian crude into India’s supply chain. However, regulatory uncertainty continues to pose risks, particularly as geopolitical tensions escalate.

The US waiver is expected to remain valid only until April 19. At the same time, US President Donald Trump has said he plans to block vessels passing through the Strait of Hormuz after talks with Iran collapsed.

The Strait of Hormuz remains a critical maritime chokepoint, handling a large share of global oil and LNG shipments.

Any disruption to vessel traffic through the route could impact global energy markets and complicate ongoing shipments, including those covered under the current waiver.

India, which depends on imports for more than 88% of its crude oil needs, has diversified its supply sources since 2019, bringing in oil from the Middle East, the United States and Russia.

References: telegraphindia, business-standard