(April 1): A US-sanctioned vessel carrying Iranian crude oil from deep inside the Persian Gulf is now indicating it’s bound for India, in what could be the first such import in nearly seven years.
The Ping Shun, an Aframax built in 2002 and sanctioned by the US in 2025, on Monday began signalling that it will reach India’s west coast port of Vadinar later this week, ship-tracking data show. The tanker loaded crude from Kharg Island in early March, according to ship-tracking firms including Kpler and Vortexa. The ship’s destination is not final and may change at any time.
A successful delivery by the vessel would mark India’s first purchase of crude from Iran since May 2019, when it stopped importing barrels from the country due to US sanctions. The journey comes as the South Asian country struggles with higher oil prices after the effective closure of the Strait of Hormuz as the US-Israeli war against Iran has disrupted Middle East fuel supplies.
The US last month tried to offer relief to the market by issuing temporary waivers on its sanctions for Iranian crude already loaded onto tankers. India’s state-backed buyers have so far avoided such purchases, as payment, shipping and insurance hurdles complicate potential transactions.
Ping Shun’s openness in signalling Vadinar could point to buyers being closer to ironing out those hurdles.
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Such issues may still present challenges, though, as seen in the case of a recent sale of Iranian liquefied petroleum gas to India, people familiar with the matter said. A vessel, Sea Bird, arrived at Mangalore on March 30 but has yet to discharge, with a port agent’s report saying that the receiver isn’t ready for the delivery yet. Payments issues were still being ironed out, the people said.
Even with the temporary waivers, some banks that serve as intermediaries in US dollar payments across Asia have indicated they won’t facilitate transactions for Iranian crude because that would entail dealing with sanctioned Iranian entities, which would still be prohibited, according to people familiar with the matter.
Prior to switching its destination to Vadinar this week, the tanker had indicated it was bound for China, where it has previously made several journeys. This would be Ping Shun’s first known delivery to India.
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The ship’s China-based manager, Nycity Shipmanagement Co Ltd as seen on the database Equasis, did not immediately respond to an emailed request for comment. Its owner, Blue Venice Shipping Inc, shares the same contact details as Nycity.
India’s state-run refiners Indian Oil Corp, Bharat Petroleum Corp and Rosneft-backed Nayara Energy Ltd receive their oil cargoes at Vadinar port. This month, Nayara will be shutting down its plant for a month for maintenance, eliminating its need to import crude.
Indian Oil, BPCL and Nayara didn’t immediately reply to emails seeking comment.
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