INSUBCONTINENT EXCLUSIVE:
Indian state refiners plan to cut oil imports from Saudi Arabia by about a quarter in MayState-run refiner Indian Oil Corporation (IOC) has
actually made its very first purchase of Norway's Johan Sverdrup crude, purchasing 4 million barrels by means of a tender as it accelerates
diversification of unrefined imports, 2 trade sources told Reuters on Monday
IOC will take delivery of two million barrels of the North Sea crude in each of May and June, among the sources said.Further details on the
trades were not yet clear
The move follows the Indian federal government's call to cut dependence on crude from the Middle East in an intensifying stand-off in
between India, the world's third-largest unrefined importer, and Saudi Arabia, the de-facto leader of the Company of Petroleum Exporting
India grumbles that long-running OPEC production cuts have developed unpredictability for customers and led to a rise in costs, producing
financial difficulties for a nation where heavily-taxed retail fuel costs recently touched record highs, threatening an economic
recovery.Indian state refiners - leading refiner IOC, Bharat Petroleum Corporation, Hindustan Petroleum Corporation and Mangalore Refinery
and Petrochemicals - are planning to cut oil imports from Saudi Arabia by about a quarter in May, Reuters reported in March
Oil from Johan Sverdrup, the largest North Sea discovery in more than three decades, started to flow to Asia's top oil importers in late
2019, with India's Reliance Industries among its very first takers.While the grade has actually gotten appeal among Chinese independent
refineries, it has hardly ever been provided to India, trade flows data on Refinitiv Eikon show
India last released a 1-million-barrel freight of Johan Sverdrup crude in September 2020, the information reveal
Chinese refiners have slowed crude purchases in the spot market amidst seasonal refinery upkeep and a large increase of Iranian oil, pushing
international oil sellers
Indian refiners, meanwhile, are taking a look at crude from the United States, West Africa, South America and the Mediterranean as
alternative choices as they diversify far from Middle Eastern oil, trade sources say.Last month, HPCL-Mittal Energy packed India's first
freight of Guyana's Liza light sweet crude
Another state refiner, BPCL, bought 3 million barrels of U.S light sweet grades, consisting of West Texas Intermediate Midland and Eagle
Ford, for arrival in Might, a trade source said.
