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Indian Oil to sign term deal for Nigerian crude
By siliconindia
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Tuesday, 17 August 2004, 19:30 IST
NEW DELHI: India's largest refiner, state-run Indian Oil Corp, plans to sign a term contract for 40,000 barrels per day (bpd) of crude oil from Nigeria, an industry official told Reuters on Tuesday.
The contract for Forcados and Bonny Light crudes will run from October 2004 to September 2005, he said.
Indian Oil earlier had a term contract for Nigerian crude but did not renew it for 2003-04 as it did not get the contracted volume of crude.
"They have offered to renew the old term contract and Indian Oil is interested," said the official.
He said that if Forcados and Bonny Light crudes could not be supplied, other grades may be offered, which Indian Oil may swap in the market for crudes suitable for its refineries.
"They said they will supply Forcados and Bonny Light to the extent it is possible. The contract will be on a best-endeavour basis," the official said.
Last month, Indian Oil bought just under four million barrels of Nigerian sweet crude.
It bought a Very Large Crude Carrier (VLCC) of Forcados from Shell and another VLCC comprising Bonny Light and Escravos from European trader Vitol.