Thursday, August 30, 2007

BPCL crude - Ash Shihr chopt Kharg Is.

National Iranian Oil Co (NIOC) is discussing a four-month term deal with BPCL, as BPCL looks to replace imports of costly Yemeni Masila crude. BPCL, on a test drive, is set to seal a 0.5 million tonnes mini term deal for the remaining four months of September-December with Iran. The crude will be processed at BPCL's Kochi refinery.

BPCL's other term deals:
Saudi Arab Medium crude - 3.75 million tonnes
Qatar - 1 million tonnes
Kuwait - 2 million tonnes
Abu Dhabi - 1.5 million tonnes
Malaysia - 750,000 tonnes
Brunei - 250,000 tonnes
Libya - 1 million tonnes
Domestic Mumbai High crude supplies - 7.1 million tonnes

Rest is procured from the spot market to augment a total processing of 21 MMTPA of crude at its 150,000 bpd Kochi and 240,000 bpd Mumbai refineries.

On the other hand, Iran supplies its crude cocktail to other Indian refiners as follows:
Reliance - Data undisclosed

Immune to radiations, the Asian countries have stepped up their imports of Iranian crude this year.

Chartering wing(s) in place - HPCL ready to fly

Reinforced with Mittal Steel, Hindustan Petroleum Corporation Ltd. has decided to set up their independent Chartering & Shipping Department for transportation of term and spot crude. HPCL's ship chartering activities are expected to commence from October, 2007 once their existing COA, for term crude, with SCI expires on September 30, 2007. Simultaneously, the company will also break free from Transchart which is currently providing spot crude transportation services to HPCL.

The company will have Bhatinda refinery, with annual capacity of 9MMT in 51-49% partnership with Steel Mittal, up and kicking by 2010. Meantime, the company has two running refineries at Mumbai - 7.9MMTPA and Vizag - 8.3MMTPA.

HPCL has already appointed Sudhir Ranganekar, Ex-Director, SCI as a consultant for setting up their Chartering & Shipping Dept.

Seems HPCL has done its home work and is ready for a plunge in the open market. Get ready to catch the splash.