An attendee stands at the Oil & Natural Gas Corp. (ONGC) news conference in New Delhi, India. (Photographer: Prashanth Vishwanathan/Bloomberg)

Iran Sanctions Can Be Bad News For ONGC, Essar Oil, FGE’s Fesharaki Says

Indian oil companies importing from Iran, especially Oil and Natural Gas Corporation Ltd. and Essar Oil Ltd., could be hit by the U.S.’ decision to impose financial sanctions on Iran, said Fereidun Fesharaki, chairman of global oil and gas consultancy FGE.

Also read: Iran Sanctions May Be a Blessing for U.S. Crude Exports

Companies such as Essar Oil are dependent on Iranian crude and reorganising their system with the lower volume of imports will be a big challenge, Fesharaki told BloombergQuint in an interview. "Development of ONGC’s Farzad B field investment in Iran will now be a violation of the U.S. sanctions,” he added.

President Donald Trump yesterday said the U.S. will withdraw from the landmark 2015 accord to curb Iran’s nuclear program and reinstate financial sanctions on the Islamic Republic, opening an uncertain new chapter for the Middle East.