India's refiner IOC buys Guyana's Liza crude
IOC is operating its 1.34mn b/d refineries at 88-90pc capacity.
By Sathya Narayanan /Argus
Petroleumworld 07 02 2021
India's biggest state-controlled refiner IOC has bought Liza crude from Guyana as part of a move to expand its purchase options, its chairman said today.
"We have procured one Suezmax of Guyanese Liza crude and have also entered into a term contract for 3mn t of US crude for further diversification," said Shrikant Vaidya, adding that IOC is the first Indian state refiner to procure Guyanese crude.
Guyana's production is set to rise to 800,000 b/d over the next four years, with higher Liza output requiring continued diversification of outlets . IOC may buy more Liza crude if the economics work, while the company usually looks for new grades to increase the number of available crude procurement options, according to a source.
Shipping data from Vortexa shows that IOC has chartered the Militos to take a crude cargo from Guyana to Paradip, on India's east coast, in the coming days, but the size of the shipment could not be determined.
The company had issued two tenders in May, listing Liza as one of the eligible grades. The first cargo was set for 4-13 August delivery to the port of Vadinar on Indian west coast, while the second one was expected to be discharged at Paradip between 23 July-1 August.
Indian state-refiners have increased crude runs in anticipation that easing of lockdowns from lower new Covid-19 cases would boost domestic demand in the coming months. IOC is operating its 1.34mn b/d refineries at 88-90pc capacity.
The daily increase in new cases has declined from a record high of over 400,000 cases in early May to about 46,000 cases. But the country remains the second most infected region in the world with 30.4mn cases.
India is also the third biggest oil consumer and imports about 80pc of its crude from other countries.