IndianOil to buy 3 million tonne US crude oil worth $1.5 bn in FY20

Indian Oil Corporation Limited, the country’s largest oil marketing company, will import up to 3 million tonnes of crude oil from the United States in the next financial year, as part of its diversification plans.

“IndianOil has finalised a term contract for import of up to 3 million tonnes of crude oil of US origin grades as a part of its strategy to diversify term crude sources. The contract was finalised on Friday, February 15, 2019,” an IndianOil statement said.
“The approximate value of the contract works out to $1.5 billion. This is the first term contract finalised by any Indian PSU oil company for import of US origin crude oil grades,” the statement added.
India started importing US crude in October 2017, when the first consignment landed in Paradip, Odisha. India’s crude oil imports from the US during April- December 2018 had tripled to 4.58 million tonne, compared to the 1.16 million tonne imported during the same period in 2017.
India also imported gas from the US in 2018, and is reported to have committed to purchase $5 billion worth of oil and gas from the United States per annum.