PSU oil cos join hands to wrest better oil purchase terms

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Public Sector Oil Companies

Public sector oil companies are said to have joined hands in negotiating oil purchases with OPEC producers to wrest better terms. In the last two months, officials from Indian Oil Corp (IOC), Bharat Petroleum Corp, Hindustan Petroleum Corp and Mangalore Refinery and Petrochemicals Ltd visited Abu Dhabi, Kuwait and Saudi Arabia to negotiate deals for FY17 beginning in April. The four refiners together control about 60 percent of India’s 4.6 million barrels per day (bpd) capacity.

Indianmandarins has learnt that while OPEC producers are said to have shown no sign yet of willingness to discount long-term price benchmarks, or official selling prices (OSPs), they have discussed concessions on loan terms and shipping that would reduce costs.

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