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Saudi tells BPCL no cut in Nov - source

Mon Nov 3, 2008 8:07pm IST
 
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NEW DELHI (Reuters) - Saudi Arabia, the world's biggest oil producer, will not cut crude supplies in November for refiner Bharat Petroleum Corp Ltd, a source at the state-run Indian firm said.

"Saudi Arabia has sent us a general letter informing us about a cut in line with OPEC decision. They have applied no cut in November lifting for us but a decision on supplies for December is yet to be announced," a company official, who declined to be named, told Reuters.

The official said Saudi Arabia may decide on cuts on a month to month basis, following OPEC's decision to cut its output by 1.5 million barrels per day.

BPCL is the third biggest buyer of Saudi crude in India after private sector Reliance Industries Ltd and another state-run refiner Indian Oil Corp.

According to trade sources, Reliance buys about 200,000-240,000 bpd from Saudi Arabia. IOC has a term contract for the current fiscal ending March to buy about 160,000 bpd.

In the last financial year, India bought 539,780 bpd Saudi Arabia crude.

BPCL buys 80,000-90,000 bpd crude from Saudi Arabia, the official said, adding that Abu Dhabi National Oil Co (ADNOC) will supply five percent less crude from December since the Indian firm only buys Murban grade.

BPCL buys about 40,000 bpd from ADNOC, national oil company of United Arab Emirates.

BPCL runs a 240,000-bpd refinery in Mumbai, India's financial hub, and another 150,000-bpd plant in Kochi in Kerala. A new 120,000-bpd refinery at Bina in Madhya Pradesh is due to be completed by 2010, by when it hopes to raise capacity at Kochi by 40,000 bpd.

Its subsidiary, Numaligarh Refinery Ltd, runs a 60,000-bpd refinery in northeast India, where processing depends on crude availability from domestic suppliers.

Construction workers work at a site as the sun sets in Chandigarh in this December 2006 file photo. REUTERS/Ajay Verma
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