India's state-owned Bharat Petroleum Corp (BPCL) and private refiner HPCL Mittal Energy Ltd (HMEL) have each bought one million barrels of Venezuelan Merey crude oil, marking BPCL's first-ever purchase and HMEL's first in two years, according to Reuters sources on Wednesday. The deals, arranged through trader Vitol, will increase India's Venezuelan oil imports to at least 6 million barrels through April.
The two companies plan to load the heavy crude oil onto a single large vessel to cut shipping costs. BPCL will split its share between its Kochi refinery in Kerala and Bina refinery in Gujarat, while HMEL will process its portion at its Bathinda refinery in northern India through Mundra port.
This comes as Indian refiners are turning to Venezuelan oil as they reduce Russian imports, a strategic move that helped India secure a temporary trade agreement with the United States, according to Reuters. HMEL stopped buying Russian oil in October, though India hasn't officially announced an end to Russian oil imports.
Other Indian companies like Reliance Industries, Indian Oil Corp, and HPCL have previously purchased Venezuelan crude at prices $6.5-$7 below the Dubai crude benchmark. Trading companies Vitol and Trafigura have been handling Venezuelan oil sales since January under US licenses, part of an agreement between Venezuela and Washington.
Venezuelan oil exports to the United States are also expected to grow in April. US refiner Valero Energy plans to receive up to 6.5 million barrels in March, while Chevron is rapidly increasing its shipments. Other U.S. refiners are also seeking direct purchases from Venezuela.
Neither BPCL and HMEL have officially made a statement on the said deals.
The TOI Business Desk is a vigilant and dedicated team of journal...
Read MoreThe TOI Business Desk is a vigilant and dedicated team of journalists committed to delivering the latest and most relevant business news from around the world to readers of The Times of India. The primary focus of the TOI Business Desk is to keep a watchful eye on the global business landscape, covering a wide spectrum of industries, markets, economic trends, in-depth analysis, exclusive reports and breaking stories that impact businesses and economies. With a mission to provide valuable insights and updates, the desk ensures that TOI readers are well-informed about the ever-changing and dynamic world of commerce and can navigate the complexities of the business world.
Read Less
Start a Conversation
Post comment