IndianOil to buy crude oil from Brunei
Friday, 18 July 2003, 19:30 IST
Printer Print Email Email
NEW DELHI: Refining and marketing major Indian Oil Corporation (IndianOil) has entered into a term contract for import of 500,000 tonnes of crude from Brunei. This is part of India's only Fortune Global 500 Company's plans to expand the basket of crude sources and to augment import on term contract basis, IndianOil said in a statement Thursday. "Crude oil supply from Brunei is part of IndianOil's overall strategy for tapping and expanding newer sources of crude oil so as to enhance supply security. The latest tie-up is also expected to open up new avenues of alliance between India and the oil-rich kingdom of Brunei," the statement added. India depends on imports for 70 percent of its domestic requirements. IndianOil general manager for international trade G.P. Agarwal signed the contract for import in this fiscal of Seria Light crude with Brunei Shell Petroleum Company (BSP) general manager (oil trading) Shahbudin Musa in the capital Thursday. Brunei Shell is a 50-50 joint venture between Shell International and the Brunei government. "Low sulphur Seria Light crude oil, (being) procured from Brunei for the first time, is suitable for processing at Chennai Petroleum Corporation Ltd. (CPCL), a subsidiary of IndianOil," the statement said. Against a total import of 32 million MT of crude oil during the current fiscal, IndianOil has plans to tie up over 50 percent of total imports through such term contracts and the remainder through spot buys. The contract for lifting 500,000 MT of crude oil from Brunei is to be completed by December 2003.
Source: IANS
siliconindia