IOC’s June oil imports to be via tenders after snap 9 mn bbl deal: Report

By Nidhi Verma and Florence Tan

NEW DELHI (Reuters) – Indian Oil Corp, the country’s top refiner, will seek oil for June arrival via tenders after snapping up 9 million barrels of prompt supplies as it delayed maintenance plans for the Paradip refinery, a source familiar with the matter said.

The refiner has deferred a 40-day maintenance shutdown of its 300,000 barrels per day Paradip refinery to August-September from April-May to gain from improved margins for oil products, the source said.

On Friday, IOC purchased 9 million barrels of crude which are expected to be delivered in May.

The refiner bought 3 million barrels each of Abu Dhabi’s Upper Zakum and Murban crude from a European trader, the first source and traders said. IOC also purchased 1 million barrels each of Congolese Djeno crude, Nigeria’s Agbami and Gabon’s Mandji crude from two oil majors and a European trader, they said.

IOC may have paid $13 a barrel above Dubai quotes for the Upper Zakum crude supplies, traders said, although the first source said premiums for the cargoes were below $10 a barrel.

In addition to IOC, Reliance Industries has also delayed three weeks’ maintenance shutdown of a crude unit at its export focussed refinery to September.

(Reporting by Florence Tan and Nidhi Verma; Editing by Susan Fenton)

(Only the headline and picture of this report may have been reworked by the Business Standard staff; the rest of the content is auto-generated from a syndicated feed.)

Dear Reader,


Business Standard has always strived hard to provide up-to-date information and commentary on developments that are of interest to you and have wider political and economic implications for the country and the world. Your encouragement and constant feedback on how to improve our offering have only made our resolve and commitment to these ideals stronger. Even during these difficult times arising out of Covid-19, we continue to remain committed to keeping you informed and updated with credible news, authoritative views and incisive commentary on topical issues of relevance.


We, however, have a request.

As we battle the economic impact of the pandemic, we need your support even more, so that we can continue to offer you more quality content. Our subscription model has seen an encouraging response from many of you, who have subscribed to our online content. More subscription to our online content can only help us achieve the goals of offering you even better and more relevant content. We believe in free, fair and credible journalism. Your support through more subscriptions can help us practise the journalism to which we are committed.

Support quality journalism and subscribe to Business Standard.

Digital Editor