The first US crude oil cargo of 1(point)6 million barrels bought by Indian Oil Corporation from the US reached Paradip Port today. Indian Oil will process the crude at its East-Coast base refineries, located at Paradip, Haldia, Barauni and Bongaigaon.
According to an official release, Indian Oil, which became the first Indian public sector refiner to source US crude has placed a cumulative order 3.9 million barrel from the US. Bharat Petroleum has also placed orders from the US for about 2.95 million barrels and Hindustan Petroleum 1 million barrels for their Kochi and Vizag refineries.
Prime Minister Narendra Modi, during his visit to the US in June 2017 had mentioned that India was looking to strengthen its hydrocarbon engagement with US. The decision to source crude from the US came soon after the visit of PM to the US.
The correspondent reports that the inclusion of the US as a source for crude oil imports by India’s largest refiner will go a long way in mitigating the risks because of geo-political disruptions.
New arrangement would also provide price stability and energy security for India, which is experiencing growth in demand for petroleum products.