MOSCOW (MRC) -- Indian Oil Corp
became India's first refiner to buy light sweet Hibernia crude from Canada's
largest oil company, doing the deal after the opening of the arbitrage for
Canadian oil to flow to Asia, reported Reuters.
Production in North America,
led by US shale output, is increasing after supply cuts by OPEC and non-OPEC
countries pushed oil prices to above USD50 a barrel.
This was also the
first time that Suncor Energy has sold a cargo of offshore Canadian crude to
IOC, a Suncor spokeswoman Sneh Seetal said on Wednesday.
to say how big the cargo was or when it would load, but confirmed Canada's
biggest oil company had won an Indian Oil Corp tender.
"We do market our
offshore crude production globally on an opportunistic basis," she
Trade sources said Suncor sold the 1-MM-barrel cargo of Hibernia
crude to IOC on a free on board basis. Separately, IOC has also bought its first
Russian Urals crude cargo in about a year in another tender.
previously bought a cargo of Canadian White Rose oil in November 2013.
State-refiners like IOC were last year given the freedom to draw up the crude
import strategies that would allow them to make swift gains from changing market
News of the Suncor cargo comes after market sources this week
said two other vessels carrying Atlantic Canadian crude are on their way to
The Stena Suede and the Jag Lalit, both Suezmaxes, loaded at
Whiffen Head terminal, Newfoundland, according to Reuters ship tracking data. At
least one of them was sold by Husky Energy to buyer PetroChina, two sources
Husky had said in February it sold its first one-million-barrel
cargo of offshore Atlantic Canada crude bound for China from its White Rose
As MRC wrote before,
Indian Oil Corporation's Rs 34,555-crore 15 million tonnes per annum Paradip
Refinery was commissioned in phases from March 2015 onwards. Indian Oil
Corporation is conducting feasibility studies to set up a petrochemical complex
at Paradip in Odisha for Rs 20,000 crore. The petrochemical complex would be
built in the vicinity of the company’s to-be-commissioned 15-mln tpa greenfield
refinery at Paradip. The petrochemical complex would be in addition to the
already announced Rs 3,150-crore polypropylene project at the same location, the
foundation stone for which was laid by MOS for petroleum and natural gas.
Indian Oil Corporation Limited, or IndianOil, is an Indian state-owned
oil and gas corporation with its headquarters in New Delhi, India.