6 days ago
BPCL Risks Strait of Hormuz to Bring Iraqi Crude
BPCL, an Indian oil company, bought crude oil from Iraq.
It must arrange the ships needed to bring the oil to India.
One tanker has already crossed the Strait of Hormuz safely.
The oil will be moved to another tanker near Fujairah.
This ship-to-ship transfer is called shuttling.
Some oil companies are using this method because ships are cautious about crossing the strait.
Iraq is offering lower prices to attract buyers.
BPCL may buy more Iraqi oil if this shipment succeeds.
BPCL bought Iraqi crude on a free-on-board basis, making it responsible for arranging shipment.
The tanker hired by BPCL has crossed the Strait of Hormuz safely, according to company official Gupta.
The crude will be transferred to another tanker near Fujairah on Thursday or Friday before heading to India.
The transfer method, known as shuttling, moves crude between tankers inside and outside the strait.
Iraq is offering steep discounts, while BPCL says its refineries can process up to 2 million barrels of Iraqi crude monthly.
- Who
- Bharat Petroleum Corporation Limited (BPCL), Iraq, and the tankers arranged for the shipment.
- What
- BPCL is transporting Iraqi crude using a tanker transfer near Fujairah after crossing the Strait of Hormuz.
- Where
- The tanker crossed the Strait of Hormuz, and the crude will be transferred near Fujairah in the Gulf of Oman before shipment to India.
- When
- The crude transfer is expected on Thursday or Friday; the articles do not provide a calendar date.
- Why
- Iraq is offering discounted crude, and BPCL is exploring commercially available supplies despite the risks and vessel shortage associated with the crossing.
Key facts
- Buyer
- Bharat Petroleum Corporation Limited (BPCL)
- Crude source
- Iraq
- Shipping basis
- Free on board, meaning BPCL is responsible for arranging shipment
- Transfer location
- Near Fujairah in the Gulf of Oman
- Transfer method
- Shuttling, or moving crude from one tanker to another outside the strait
- Processing capacity
- BPCL refineries can process up to 2 million barrels of Iraqi crude per month
- Pricing
- Iraq is offering steep discounts to attract refiners and traders
Quotes
Gupta
A BPCL representative quoted in the article
“Once we are successful through this route, maybe from next month we can plan certain cargoes from SOMO and others available this side.”
businesstoday.in
“We are exploring all commercially available crude”
businesstoday.in
Sources
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