TNI || New Delhi || 30th March 2022
After failing to attract interest in a bid earlier this month, ONGC Videsh Ltd. has sold nearly one cargo of Russian Sokol oil to Indian refiners Hindustan Petroleum Corp. and Bharat Petroleum Corp.
After some companies and countries rejected imports from Moscow due to sanctions against Russia for its invasion of Ukraine, Indian companies are picking up Russian oil at low rates.
India, which happens to be the world’s third-largest oil importer and consumer, has put no limitations on Russian oil shipments.
ONGC Videsh, the Oil and Natural Gas Corporation’s overseas investment arm, owns an interest in Russia’s Sakhalin-1 field and sells its portion of the project’s oil through tenders.
In a tender held earlier in March, ONGC Videsh received no offers for the Sokol crude oil shipment for May loading.
According to the sources, HPCL and BPCL were able to negotiate a lower price for the cargo. HPCL has made its first ever purchase of Sokol crude. The grade had previously been purchased by BPCL in 2016.
According to the sources, the two refiners will pay ONGC in rupees. According to one of the sources, ONGC Videsh will attempt to sell additional cargoes to Indian refiners if there is no interest from global customers.
Russian oil sales have been hurt by Western sanctions imposed in response to Russia’s invasion of Ukraine, allowing Indian and Chinese refiners to buy Russian Urals crude at a significant discount.