Saudi Arabia to raise crude sales to India in 2012
22 Nov 2011
Saudi Arabia is likely to increase crude shipments to Indian refiners next year as they add plants and seek alternative supplies after a lingering payment dispute with Iran. Iran supplies the second highest level of crude to Indian refiners after Saudi Arabia.
According to reports, state-run Saudi Arabian Oil Co may ship an additional 65,000 barrels of crude a day to Mangalore Refinery & Petrochemicals Ltd (MRPL), Bharat Petroleum Corp and Hindustan Mittal Energy Ltd.
The three refiners currently import at least 90,000 barrels a day.
HPCL-Mittal, a joint venture between Hindustan Petroleum and billionaire Lakshmi Mittal is building a refinery at Bhatinda in northern India. Reports suggest that it will seek 40,000 barrels a day of Saudi crude from next year.
The company, reports suggest, has requested a mix of Arab Heavy and Arab Medium grades from Saudi Aramco. The Middle East supplier is considering whether it can supply the grades, which are available in limited quantities.
Mangalore Refinery, a unit of Oil & Natural Gas Corp, has agreed to buy as much as 20,000 barrels a day more Arab Super Light grade, raising contracted supply to more than 40,000 barrels in 2012.
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