- News>
- Companies & Commodities
IOC to set up its own foreign trade desk
New Delhi, Mar 30: State-owned refiner Indian Oil Corporation (IOC) will set up its own foreign trade desk in India to handle crude oil imports.
New Delhi, Mar 30: State-owned refiner Indian Oil Corporation (IOC) will set up its own foreign trade desk in India to handle crude oil imports.
"KPMG, the consultant appointed to suggest options of
setting up oil trading and risk management desk, has submitted
its report. Based on the recommendations, we would be setting
up a trading desk in India," well placed company sources said.
IOC, the country's largest refiner, wants to scrap its present system of importing crude oil through tenders and adopt contemporary practices to be competitive, they said.
The company, which imports about 37 million tonnes of crude oil a year, had been talking to BP for a year on cooperating in crude imports and risk management. But IOC's board, in which petroleum ministry officials are represented, asked its international trade officials to re-assess the benefits of tying up with BP instead of going alone.
Last year it abandoned talks with BP so that the entire benefit would accrue to the company only, sources said.
IOC chose India over London as it provided the advantage of operating in both Asian and European time zone. A trading desk in India would be able to capture the Singapore market when it opens in the morning (Singapore being ahead of India in time) and the American market when it closes.
The consultant would help the firm decide on the software and hardware needed for its desk and recommend a suitable infrastructure of its operation, they said, adding IOC personnel would be specially trained in international business to optimise the company's crude oil purchases.
Bureau Report
IOC, the country's largest refiner, wants to scrap its present system of importing crude oil through tenders and adopt contemporary practices to be competitive, they said.
The company, which imports about 37 million tonnes of crude oil a year, had been talking to BP for a year on cooperating in crude imports and risk management. But IOC's board, in which petroleum ministry officials are represented, asked its international trade officials to re-assess the benefits of tying up with BP instead of going alone.
Last year it abandoned talks with BP so that the entire benefit would accrue to the company only, sources said.
IOC chose India over London as it provided the advantage of operating in both Asian and European time zone. A trading desk in India would be able to capture the Singapore market when it opens in the morning (Singapore being ahead of India in time) and the American market when it closes.
The consultant would help the firm decide on the software and hardware needed for its desk and recommend a suitable infrastructure of its operation, they said, adding IOC personnel would be specially trained in international business to optimise the company's crude oil purchases.
Bureau Report