Indian Oil rules out shift from Gulf crude
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Indian Oil Corporation has no plans to shift away from Gulf crude oil despite current uncertainties in the region, citing freight advantages and refinery configurations tailored for Gulf crude. The company is preparing for alternative shipping routes amid volatile conditions and is cautious about signing long-term supply contracts given market uncertainties.
New Delhi: Indian Oil Corp has no plans to shift away from Gulf crude despite the current uncertainties, as the region offers freight advantages and its refineries are configured to process Gulf grades, Chairman A S Sahney said.The company does not foresee any immediate disruption to crude supplies despite the resumption of hostilities in West Asia. "We are comfortable till August and most of September," Sahney said.Indian Oil is currently not receiving any crude through the Strait of Hormuz or the Red Sea route, he said, adding that the situation remains highly volatile. The company is preparing to use alternative shipping routes for Saudi crude via the Cape of Good Hope in case Red Sea transit remains disrupted.Also read | India slashes commercial LPG prices by ₹200Given the prevailing uncertainty, Indian Oil is not looking to sign any long-term oil or gas supply contracts as the current market is not conducive to securing favourable terms, Sahney said.Indian Oil has no firm plans to sign a new long-term LPG supply agreement with US suppliers, Sahney said. It is, however, planning to acquire stakes in two very large gas carriers to support its expanding LNG imports, he added.Also read | How an iron ore empire began to raise doubts