Iranian oil imports to be cut to aid U.S. pressure: Azumi

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"We have not asked companies to cut imports from Iran," Sudhir Bhargava, additional oil secretary, told reporters. He added India was looking for alternative supplies and that an existing payment mechanism was working. He didn't explain why India was looking for alternative supplies.

India, Iran's largest oil buyer after China, imports about 12 percent of its oil needs, or 350,000-400,000 barrels per day, (bpd) from Iran. The shipments are worth $12 billion annually.

Industry sources told Reuters on Wednesday that the government had told refiners to reduce Iranian oil imports and find alternative supplies. They said New Delhi may not seek a waiver from the latest U.S.

"He didn't explain why India was looking for alternative supplies.India, Iran's largest oil buyer after China, imports about 12 percent of its oil needs, or 350,000-400,000 barrels per day, (bpd) from Iran"sanctions.

India has been struggling to pay for Iranian crude owing to sanctions on dealings with Iran, government officials have said previously.

New U.S. laws authorised on December 31 impose sanctions on financial institutions dealing with Iran's central bank, the main clearing house for the country's oil payments. That is widely expected to make it even tougher for importers to pay for Iran crude.

India currently pays for Iran crude through Turkey's Halkbank, a mechanism government officials have said may be cut off by the latest U.S. sanctions.

An Indian delegation will visit Tehran from Jan. 16-21 to explore alternative routes of payment to try to ensure supplies without breaching sanctions, government officials said on Wednesday.

A government source said on Thursday that India had not sought a waiver from the U.S.

sanctions.

"We will decide on the basis of what happens during our upcoming trip to Iran, and whether other suppliers can supply more," the source said.

Japan and South Korea intend to seek waivers on the sanctions from the United States.

Indian refiners have gradually started raising supplies from other sources such as Saudi Arabia, Iraq and the United Arab Emirates. (Reporting by Nidhi Verma and Frank Jack Daniel; Writing by Krittivas Mukherjee; Editing by Neil Fullick)

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