Hindustan Petroleum (HPCL) is looking to buy crude from sanctions-hit Syria and has asked state-run Shipping Corp of India (SCI) to arrange a vessel, sources familiar with the plan said on Wednesday.

Sanctions aimed at crude oil exports have warded off regular buyers of Syrian crude, mainly European customers, offering an opportunity to big Asian importers like India and China that have stakes in Syria’s oil business.

SCI is scouting for an Aframax vessel for HPCL, the sources said. The issue is complicated because sanctions bar the necessary P&I insurance for ships loading with Syrian oil which means SCI cannot use its own fleet.

"The oil industry has requested SCI to do it. SCI cannot be a direct party, but can be a facilitator. However SCI is not assuring it will be done, but is trying to help them and making some enquiries (for vessels)," a shipping source said.

At present, India imports no crude from Syria. A trade source said the Indian companies might be attracted to the Syrian crude because of potential discounts.

Syrian oil represents less than one percent of daily global production but accounts for a vital portion of Syrian government earnings, which Western powers say could be used by President Bashar al-Assad for a bloody military crackdown on the opposition.

Reuters