BPCL Signs Deal With BP To Purchase US WTI Crude
Indian state-owned oil refiner Bharat Petroleum Corp (BPCL) has inked a significant agreement with BP to procure one million barrels per month of US West Texas Intermediate (WTI) crude for a span of four months, trade sources disclosed.
The commencement of deliveries is slated to start from June onwards, marking a strategic move in BPCL's crude sourcing strategy.
Reuters sources revealed that BPCL has also secured an additional 2 million barrels of WTI crude through a separate spot tender, designated for loading in April. This procurement diversifies BPCL's crude oil portfolio and underscores its commitment to meeting market demands efficiently.
BPCL, renowned for its acquisition of US oil for its three refineries with a collective capacity of processing 7,06,000 barrels per day (bpd) of crude, is set to leverage the superior quality and economic viability of WTI crude. The WTI crude is poised to cater to BPCL's stringent low-sulfur crude requirements, surpassing the comparative standards of oil originating from West Africa and the Mediterranean.
Anticipations are rife that BPCL will witness an upsurge in crude processing activities in the upcoming fiscal year, commencing in April. This projection stems from the recent maintenance shutdown of BPCL's 1,56,000 bpd Bina refinery situated in central India, along with temporary closures of units at its 1,20,000 bpd Mumbai refinery for maintenance purposes.
(Inputs from Reuters)
