BPCL Engages In Discussions With Rosneft To Explore The Possibility Of Purchasing Oil Prices Based On The Dubai Benchmark
BPCL Discusses The Purchase Of Oil With Rosneft At The Dubai Benchmark
BPCL, the Indian state-level refiner, is in conversation with Rosneft for the purchase of discounted Russian crude. They are looking to buy around 6 million metric tons (43.8 million barrels) based on the Dubai benchmark price.
If the deal is successful, India will be able to have a better relationship with its current largest oil supplier, considering Moscow's sanctions by the West. It would also help establish the shift in pricing by Rosneft against the Middle Eastern benchmark set in Asia as well as Europe's Brent.
With respect to the deal, Rosneft is expected to deliver around 700,000 to 720,000 barrels or 6-7 cargoes to BPCL every month till March next year.
The discussion is heading towards a contract where both parties finalise details with respect to payment terms. India is the 3rd largest importer of oil, with around 40% being imported from Russia after declining European supplies.
Previously, Indian refiners seldom purchased Russian oil because of the high cost of transportation. Still, it is now importing most of its supply from Russia since the Western countries cut ties with Moscow as a result of the Ukraine invasion.
BPCL will be buying crude from Russia at a discounted price of USD 8 each battle at the Dubai benchmark, which is heavily influenced by Middle Eastern and Asian oil trading.
Following the successful completion of the new discussion, BPCL will be importing different Russian oil grades, such as Varandey, Sokol, and Urals.
According to the Procurement Resource article, India's BPCL is in discussions with Rosneft for the purchase of discounted crude oil from Russia, adding the Dubai price benchmark. Both countries will benefit from the deal as India is getting oil at a discounted rate wild Russia is expanding its market into Asia following the sanctions by many Western countries that opposed the invasion of Ukraine.
