Hindustan Petroleum to buy 1 million barrels more Saudi crude

Posted By: Religare
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HPCL to buy 1 million barrels more Saudi crude
K. Murali, Hindustan Petroleum's director of refineries said that in order to fill the vacuum that was created by Iran after it cut supply of crude to New Delhi, Hindustan Petroleum Corp which operates 2 major refineries producing a wide variety of petroleum fuels & specialties, one in Mumbai and the other in Vishakapatnam will purchase an extra 1 million barrels of crude from Saudi Arabia in August.

He also added that in the near future, they can also take from other countries that they have term contracts with such as Kuwait and Saudi Arabia.

The company buys about 2.5 million metric tons a year of Saudi crude, or 50,000 barrels a day.

Last week, Iran told Indian refiners that it would cut oil shipments amounting to about 400,000 barrels per day (bpd) in August. 

Tehran aims to pressure the refiners into settling $5 billion in debts for crude already supplied and to find a way around U.S. and UN sanctions that make trade with Iran difficult.

Iranian oil normally meets about 12 percent of India's total demand of 3.46 million bpd.

The buyers in India reached out to Aramco to request additional crude to plug the gap from Iran. They have also sought more crude from the United Arab Emirates, Kuwait and Iraq.

Story first published: Thursday, July 28, 2011, 13:31 [IST]
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