New Delhi, Jan 14: Hindustan Petroleum Corporation Ltd (HPCL) will import one-third of its crude oil requirement in 2004-05 on government-to-government term contracts. "Of the 9 million tonne crude oil we plan to import in 2004-05, just over 6 million tonnes will be on term contract," HPCL chairman and managing director M B Lal told reporters on the sidelines of an oil and gas conference here.
During the current fiscal, it tied-up with Petronas of Malaysia for importing about 250,000 tonnes of crude oil, a small proportion of its total imports of 8.5 million tonnes in 2003-04.
HPCL, which sourced more than 70 per cent of its crude oil imports in 2003-04 through term contracts, will buy 0.25 million tonnes of Tapis blend, Miri light or Labuan grade depending on the Malaysian firm's option between July 1, 2003 and June 30, 2004.
During 2003-04, Oil and Natural Gas Corporation (ONGC) will supply hpcl a little over 5 million tonnes of crude from domestic fields while the remaining 13.60 million tonne crude requirement by HPCL would be imported.
HPCL has term contracts to buy 3.70 million tonnes of Arab mix and Arab light from Saudi Aramco, 1.50 million tonnes of Murban, Umm Saif and Zakum from Abu Dhabi National Oil Company and 0.81 million tonnes of Essider from Libya's National Oil Company. The remaining 2.25 million tonnes of crude was bought from the spot market.
"We expect the term contracts will be rolled-over (renewed) next fiscal," Lal said. Bureau Report