Japan's JX, Cosmo cutting Iran crude imports

JX Nippon Oil & Energy Corp will cut crude oil imports from Iran by 10,000 barrels per day and Cosmo Oil has already reduced Iranian crude imports by around that amount, media and a source said, as Japan's government mulls restrictions on crude imports from that country due to U.S. sanctions.

JX Nippon Oil & Energy Corp, Japan's top oil refiner and a unit of JX Holdings, is likely to cut imports of Iranian crude to around 80,000 barrels per day (bpd) in April from about 90,000 bpd now, the Nikkei newspaper said on Wednesday.

Smaller rival Cosmo Oil Co has already lowered its Iran crude imports to a little below 30,000 bpd from about 40,000 bpd since January, an industry source told Reuters.

Fresh U.S. sanctions on Iran over its nuclear programme could make it difficult for refiners in Japan, Iran's No. 3 crude buyer, to pay Tehran for its oil. JX and Cosmo may reduce Iranian imports further depending on the result of talks on the matter between Japan and the United States.

Japan's Sankei newspaper also said on Wednesday that JX has renewed a contract to import 83,000 bpd from Iran in 2012. But JX also has a separate 10,000 bpd contract that expires at the end of March, and there is a possibility JX may not renew it.

A JX spokesman said the reports were based on speculation.

Some other Japanese refiners including Idemitsu Kosan Co have not yet decided on reductions of imports from Iran and are awaiting instructions from the government.

Source: REUTERS