London: India’s top refiner Indian Oil Corporation (IOC) will no longer accept cargo of Russian crude oil and Kazakh CPC blend cargo on free-on-board (FOB) basis due to insurance risk, according to a tender notice and a source familiar with the matter.
The letter was sent on Monday to traders who submit cargo offers in IOC’s regular crude oil purchase tenders.
Earlier this month, the IOC bought two million barrels of Russian Urals for the first time in two years.
A source at another state refiner, Bharat Petroleum Corp, said his firm buys most of the Urals on a delivery basis, which includes freight and insurance, as opposed to FOB. The source said traders were not offering Russian barrels.
Russia and Kazakhstan are small suppliers to India. In December, the two countries accounted for 64,000 barrels per day (bpd) of the 4.7 million bpd.
The letter was sent on Monday to traders who submit cargo offers in IOC’s regular crude oil purchase tenders.
Earlier this month, the IOC bought two million barrels of Russian Urals for the first time in two years.
A source at another state refiner, Bharat Petroleum Corp, said his firm buys most of the Urals on a delivery basis, which includes freight and insurance, as opposed to FOB. The source said traders were not offering Russian barrels.
Russia and Kazakhstan are small suppliers to India. In December, the two countries accounted for 64,000 barrels per day (bpd) of the 4.7 million bpd.
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