BPCL plans to buy US oil via 4-month tender

NEW DELHI: Indian state refiner Bharat Petroleum Corp (BPCL) plans to float a 4-month tender next week to buy US West Texas Intermediate (WTI) crude, a person familiar with the matter said on Friday, as it eyes cheaper oil from the world’s top producer.

The refiner will be seeking one million barrel of WTI every month for arrival from May or June for four months, the source said. The Indian refiner last year awarded a similar tender to European major BP.

BPCL often buys US oil for its three refineries, which have combined capacity to process 706,000 barrels per day of crude, Reuters reported.

India’s imports of US oil last month climbed to their highest in over two years, ship tracking data show, as refiners in the country sought alternative supplies following tighter US sanctions on Russian producers and shippers.

India is planning to raise its energy imports from the US to $25 billion in the near future from about $15 billion last year.

The US exported about 357,000 bpd crude to India, the world’s third biggest oil importer and consumer, in February, ship tracking data from Kpler showed. That compared with exports of about 221,000 bpd last year.