New Delhi/Mexico: Indian Oil Corporation (IOC), the country’s top refiner, will increase crude oil purchases from Iraq by 11.5% to 390,000 barrels per day (bpd) in 2022, partly to account for shortfalls from Mexico and potential supply cuts from Kuwait, two sources familiar with The thing said.
Iraq is India’s top supplier of oil and its market share there is set to grow as another refiner Hindustan Petroleum Corp will also buy more crude from the Middle Eastern country.
India is the third largest oil importer in the world.
Sources said the IOC has resorted to buying more volumes from Iraq as Mexico is curbing supplies as it opens a new refinery. read more
Sources said Indian refiners also expect oil supplies from Kuwait to be cut in the next financial year starting in April as Kuwait aims to commission its 615,000 bpd Al-Zour refinery this year.
Last year, Kuwait initially signed a nine-month oil supply contract with the Indian refiner, but later extended it for three months till March 2022 due to delays in the commissioning of the Al-Zour refinery.
Mexico’s national oil company Pemex has agreed to supply 22,000 bpd (1.1 million tonnes) of oil to the IOC, sources said.
Last year, the IOC struck a term deal to buy 350,000 bpd (17.5 million tonnes) from Iraqi oil marketing company SOMO and about 40,000 bpd (2 million tonnes) from Pemex, a source said.
The IOC, SOMO, Iraq’s oil ministry and Pemex did not respond to Reuters requests for comment.
As OPEC’s second-largest oil producer, Iraq will be able to boost exports by 250,000 bpd from the second quarter after completing the installation of pumping stations at its Gulf ports, an Iraqi oil source has said.
Iraq is India’s top supplier of oil and its market share there is set to grow as another refiner Hindustan Petroleum Corp will also buy more crude from the Middle Eastern country.
India is the third largest oil importer in the world.
Sources said the IOC has resorted to buying more volumes from Iraq as Mexico is curbing supplies as it opens a new refinery. read more
Sources said Indian refiners also expect oil supplies from Kuwait to be cut in the next financial year starting in April as Kuwait aims to commission its 615,000 bpd Al-Zour refinery this year.
Last year, Kuwait initially signed a nine-month oil supply contract with the Indian refiner, but later extended it for three months till March 2022 due to delays in the commissioning of the Al-Zour refinery.
Mexico’s national oil company Pemex has agreed to supply 22,000 bpd (1.1 million tonnes) of oil to the IOC, sources said.
Last year, the IOC struck a term deal to buy 350,000 bpd (17.5 million tonnes) from Iraqi oil marketing company SOMO and about 40,000 bpd (2 million tonnes) from Pemex, a source said.
The IOC, SOMO, Iraq’s oil ministry and Pemex did not respond to Reuters requests for comment.
As OPEC’s second-largest oil producer, Iraq will be able to boost exports by 250,000 bpd from the second quarter after completing the installation of pumping stations at its Gulf ports, an Iraqi oil source has said.
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