IOC buys oil from Guyana, signs up term pact for US crude

NEW DELHI: India’s top state refiner has made its first purchase of crude oil from Guyana and entered into a contract to buy 3 million tonnes of US crude as it seeks to diversify its oil imports.

“We have procured one Suezmax of Guyanese Liza crude and have also entered into a term contract for 3 million tonnes of the US crude for further diversification,” Indian Oil Corporation (IOC) chairman Shrikant M Vaidya said.

He said IOC is the first Indian state refiner to procure Guyanese crude. The firm is bringing the Guyanese crude to its Paradip refinery in Odisha.

“IndianOil becomes the first Indian PSU refiner to procure Guyanese crude as part of our continuous efforts to diversify crude basket,” he said.

In March, HPCL-Mittal Energy Ltd, a joint venture between

(HPCL) and steel tycoon L.N. Mittal, had bought a million barrels of Liza grade.

Tapping nations such as Guyana is part of the strategy to diversify crude sources after the Organization of Petroleum Exporting Countries (OPEC) and its allies, also known as OPEC+, in March ignored calls to ease supply curbs, leading to a spike in global oil prices.

India is the world’s third-largest crude consumer and importer. It imports about 85 per cent of its oil needs. Traditionally, Middle East nations such as Saudi Arabia and Iraq have been its principal suppliers.

Guyana’s production is set to rise to 800,000 barrels per day over the next four years.

IOC may buy more Liza crude if the economics work.