Bharat Petroleum Corporation Limited (BPCL)

"India's state-run Bharat Petroleum Corp (BPCL.NS) could annually take up to 2 million tonnes of Iranian oil if the OPEC member offers concessions to make its crude oil attractive compared to rival grades, a company official said on Thursday.

BPCL was annually taking 2 million tonne of Iranian crude oil on average when Tehran was not under U.S. sanctions.

"We have been taking 2 million tonnes (per year) of Iranian crude oil, on an average, when things were normal. We will go back to that number ... I won't be taking 6 million tonnes of Iranian oil ", said N. Vijayagopal, BPCL's head of finance.

Vijayagopal, however, said purchases of Iranian oil depends its pricing compared to the similar rival grades." (Reuters, "India's BPCL may resume Iranian oil buying if no sanctions, needs concessions," 5/27/2021). 

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As of December 2020, Rhode Island continues to list BPCL as an Iran scrutinized company for active involvement of at least $50 million in Iran's energy sector.

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BPCL is listed on the 4Q 2020 Minnesota State Board of Investment List of Unauthorized (Scrutinized) Iran Companies. 

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In 2020, the U.S. state of Mississippi listed BPCL on its state lists of Companies Doing Business with the Iranian Petroleum/Natural Gas, Nuclear and Military Sectors, rendering BPCL ineligible for investment and/or state contracting.

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"The company was reported as potentially purchasing Iranian crude. In 2018 CalPERS designated the company as under review. In 2019 CalPERS changed the designation to “being monitored” because CalPERS’ initial screening has not identified the company as having involvement in the regions and/or activities targeted by the Act. CalPERS has maintained the company in “monitor” status for 2020. CalPERS continues to monitor the company for possible changes in status relevant to the Act."

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"Bharat Petroleum Corporation Ltd. was identified as potentially purchasing Iranian crude. In 2017, CalSTRS designated Bharat Petroleum Corporation Ltd. as “Under Review” for potentially having ties to Iran. In 2018, CalSTRS changed the status to “Being Monitored” because India is one of eight countries receiving a sanctions waiver that has since expired. CalSTRS has maintained the “Being Monitored” status in 2020 while confirming the company's compliance with current sanctions."

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On January 20, 2020, Minnesota SBI listed BPCL as a scrutinized investment. The managers are explicitly instructed to refrain from purchasing securities on this list.

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On March 13, 2019, the Mississippi Department of Finance & Administration identified BPCL as a company “engaged in investment activities in Iran, providing funds, goods or services valued at $20,000,000 or more in the energy sector of Iran."

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In 2019 BPCL was listed on the Texas Comptroller List of Companies Engaging in Scrutinized Business Operations in Iran.

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In 2017, the California State Teachers Retirement System (“CalSTRs”) designated BPCL as “Under Review.” In 2018, CalSTRS changed the designation to “being monitored” because India was one of eight countries to receive a sanction waiver. CalSTRS maintained the “Being Monitored” status in 2019.

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In 2018, the California State Public Employees Retirement System (“CalPERS”), designated BPCL as “Under Review” for potentially purchasing Iranian crude. In 2019, CalPERS changed the designation to “Being Monitored” because CalPERS’ “initial screening has not identified the company as having involvement in the [activities] targeted by the [2019 California Public Divest from Iran] Act

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State-run Bharat Petroleum Corp will import 1 million barrels of Iranian oil in February after a gap of three months, with the nation’s overall purchases from Tehran remaining at 9 million barrels, three industry sources said. (1/7/2019)

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In 2017, CalSTRS designated Bharat Petroleum Corporation Ltd. as “Under Review” for potentially purchasing Iranian crude. In 2018, CalSTRS changed the designation to “Being Monitored” because India is one of eight countries receiving a sanction waiver.

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Indian state refiner Bharat Petroleum Corp has requested an extra one million barrels of oil from the National Iranian Oil Co. (NIOC) for June, two industry sources said, amid a looming threat of stringent U.S. sanctions. (June 1, 2018).

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In 2017, the U.S. states of Tennessee, South Carolina, Rhode Island, Mississippi, and Minnesota listed Bharat Petroleum Corporation Limited on its state list of Companies Doing Business with the Iranian Petroleum/Natural Gas, Nuclear and Military Sectors, rendering Bharat Petroleum Corporation Limited ineligible for investment and/or state contracting.

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March 2017 - Indian Oil Corp and Mangalore Refinery and Petrochemicals Corp will reduce imports by 20,000 bpd each to about 80,000 bpd. Bharat Petroleum Corp and Hindustan Petroleum Corp will together cut imports by about 10,000 bpd to roughly 30,000 bpd, they said.

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"For the year, the world's third biggest oil consumer bought about 473,000 barrels per day (bpd) of oil from Iran to feed expanding refining capacity, up from 208,300 bpd in 2015, the data showed... Indian refiners Reliance Industries, Hindustan Petroleum, Bharat Petroleum and HPCL-Mittal Energy Ltd (HMEL) last year resumed imports from Tehran, attracted by the discount offered by Iran." (Reuters, "India's 2016 Iran Oil Imports Hit Record High - Trade," 1/13/2017).

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In 2016 and 2017 Tennessee used the South Carolina list of "Entities Ineligible to Contract with the State of South Carolina or any Political Subdivision of the State per the Iran Divestment Act of 2014, S.C. Code Ann." as its list of persons it determines engage in investment activities in Iran. BPCL was included on this list in 2016 and 2017. "Inclusion on this list would make a person ineligible to contract with the state of Tennessee, if a person ceases its engagement in investment activities in Iran, it may be removed from the list."

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India is set to buy 6 million barrels of Iranian crude for its strategic oil reserves as negotiations with the United Arab Emirates' national oil company for supplies are stuck over commercial terms, industry sources said... Three industry sources with direct knowledge of the matter said India would buy 6 million barrels of Iranian Mix crude from the National Iranian Oil Co in October and November to fill half the Mangalore storage facility in the southwestern state of Karnataka... State firm Bharat Petroleum Corp will buy 4 million barrels in two very large crude carriers (VLCCs) and Mangalore Refineries and Petrochemicals Ltd will import 2 million barrels, the three sources said. (Reuters, "India set to buy Iran oil for emergency reserves: Sources," 9/20/2016).

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In 2015 BPCL was removed from Pennsylvania Treasury's List of Scrutinized Companies Determined as Having Involvement In Iran because the company's "involvement in purchases of crude oil falls uner the waivers granted by the U.S. government that meet Section (a)(2) of Act 44's expiration clause."

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Bharat Petroleum Corporation Limited (BPCL) engages in the refining, storing and retailing of petroleum products, and is “one of India's largest PSU companies, with Global Fortune 500 rank of 287 (2008). Bharat Petroleum is considered to be a pioneer in Indian petroleum industry with various path-breaking initiatives such as Pure for Sure campaign, Petro card, Fleet card etc” (Business website).

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"Bharat Petroleum Corp. Ltd. (BPCL) and Hindustan Petroleum Corp. Ltd. (HPCL) will forego buying Iranian crude even as Mangalore Refinery & Petrochemicals Ltd. (MRPL) accepts an offer from the Persian Gulf nation to waive shipping charges. Refiners want to import crude in rupees amid a 13% slump against the dollar this year while Iran doesn’t want to accept the Indian currency, according to the government in New Delhi. While MRPL has accepted an offer for free shipping, BPCL and HPCL haven’t brought oil from the Islamic Republic since April. 'Unless and until the payment issue is resolved, there’s no point taking Iran crude,' said B.K. Datta, the director of refineries at BPCL, the country’s second-biggest state refiner. 'We have plans to buy Iran crude this year, but can’t until there is clarity on the payment mechanism,' he said in a phone interview from Mumbai…The free shipping will translate into a saving of a little less than a dollar for every barrel of crude, according to the official, who declined to provide further details of MRPL’s purchases. BPCL and HPCL haven’t bought Iranian crude in the financial year that began in April because local insurers refused to cover the risks for using the oil. An Indian government plan to prepare a Rs2,000 crore ($319 million) insurance fund for future purchases from Iran is yet to be implemented…India plans to purchase 11 million metric tonnes of Iranian crude in the year ending 31 March, according to oil secretary Rae. That would be a drop of more than 15% from the previous year." (Live Mint, "BPCL, HPCL forego Iran oil as rival gets free shipping," 11/8/13)

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"India aims to cut Iranian crude imports by 15 percent this fiscal year, the oil secretary said on Tuesday, differing from the oil minister who recently said he wanted to hold the shipments at last year's levels. Ahead of Prime Minister Manmohan Singh's visit to the United States last week, Oil Minister M. Veerappa Moily said Iranian imports should be held steady at 260,000 barrels per day (bpd) to save as much as $8.5 billion in foreign exchange as Tehran accepts partial payment in rupees. However, Oil Secretary Vivek Rae, the Petroleum Ministry's top bureaucrat, said on Tuesday that India targets oil imports of around 220,000 bpd from Iran in the year through March 2014…Three other refiners - Hindustan Petroleum, Bharat Petroleum and Indian Oil Corp - can each import about 1 million to 1.5 million tonnes for the year, or about 20,000 bpd." (Reuters, "India aims to cut Iran oil imports by 15 pct - oil secretary," 10/1/13)

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"Indian refiner Bharat Petroleum Corp (BPCL) has not received Iranian oil since February as it could not open an account with Turkey's Halkbank, which is used by other Indian refiners to pay for oil from Tehran in euros." (Reuters, "India's HMEL bought 2 million barrels of Iranian oil: sources," 10/13/2012)

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State-run Hindustan Petroleum (HPCL) has made its first payment for Iranian oil in rupees to partially settle its bill for a cargo imported in May, company officials said on Friday, a move that will help New Delhi fix its trade imbalance with Tehran . . . Earlier, Bharat Petroleum Corp had used the rupee payment facility to settle its backlog of about $500 million with Iran as, unlike other refiners, it could not open an account with Halkbank. (Reuters, "India HPCL begins rupee payment for Iran oil," 8/3/12)

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"India's Bharat Petroleum Corp has made its first payment for Iranian oil in rupees, two industry sources said on Tuesday, becoming the first refiner to use a payment channel that skirts tightening Western sanctions on Iran's trade . . . 'BPCL made (its) first payment on Friday and the second on Saturday. It has settled a backlog of 27 billion rupees for last fiscal year's imports,' said one of the source familiar with the development. The figure is equivalent to $482.19 million. BPCL, unlike other refiners, could not open an account with Halkbank to pay for oil imports to the National Iranian Oil Co (NIOC). BPCL last received oil from Iran in January." (Reuters, "India's BPCL starts rupee payments for Iran oil-sources," 6/19/12)

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"Indian refiners cut imports from Iran by 38 percent in May from a year ago, tanker discharge data showed, in a second month of steep reductions as they switch suppliers to cushion the impact of new U.S. sanctions on Tehran . . . Bharat Petroleum Corp. Ltd. did not buy any Iranian oil since February." (Reuters, "India cuts May Iran oil imports 38 pct-trade," 6/7/12)

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In 2011, BPCL was added to the Pennsylvania Treasury's List of Scrutinized Companies Determined as Having Involvement in Iran because of oil-related investment of US $20 million since 1996.

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As of April 2010, BPCL imports five thousand barrels of crude oil per day from Iran. (Reuters, "Iran’s Crude Oil Buyers in Europe, Asia," 4/18/10)

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In 2007, BPCL completed a deal with an Iranian oil company: "Iran is set to further boost its rising crude oil exports to Asia, as OPEC's second-biggest producer is close to concluding its first term contract with Bharat Petroleum Corp Ltd (BPCL)." "National Iranian Oil Co (NIOC) is discussing a four-month deal with BPCL, the only Indian refiner so far not to lift term Iranian crude, as the Indian state firm looks to replace imports of costly Yemeni Masila crude, a BPCL official said on Tuesday" (Reuters, "BPCL nears first term crude deal with Iran,"