Indian Oil intends to receive the sour crude from North American sellers at Paradip port between September 25 and October 4 or at Vadinar refinery in the western part of the country during the first week of October. Indian refiners are scouting for cheaper heavy crude oil grades from Iran and Iraq in recent years but now they want to diversify the import.
Indian Oil wants sellers to take responsibility for delivery at port mentioned in the tender. “Prices of crude are almost the same at all places. If the responsibility of delivery is with the sellers, then the expenses will be included in the cost of crude,” Taneja added.
Resource diversification is also part of India’s policy which it is applying its buying power to get best prices. “It has nothing to do with Middle East crisis as supplies were never interrupted in the past despite bad conditions in the region. It is part of our energy security strategy which intends to diversify the supply sources that we import,” Taneja said.
As India is migrating towards global standard fuels by April 1, 2020, Indian oil companies are investing $13.5 billion for refinery upgradations. India has created oil reserve in its underground rock caverns of storage capacity 5.33 million metric tons of crude oil at three locations.
Earlier this year, Petroleum Minister Dharmendra Pradhan said ADNOC of UAE, Saudi Aramco of Saudi Arabia and Shell have expressed their interest in storing crude oil in the strategic petroleum reserve facilities. India needs to import 80 percent of its total oil requirement.
Source Link – Sputik News
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