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IOCL signs first Term contract for importing Russian crude oil to India

Newdelhi:5/2/20:The Minister of Petroleum & Natural Gas and Steel, Shri Dharmendra Pradhan and Mr Igor Sechin, CEOand Chairman of Rosneft, held the bilateral meeting here today. Both leaders also witnessed the signing of the first-ever Term Contract between IOCL and Rosneft for importing 2 Million Metric Tonnes of Urals grade crude oil during the year 2020 to India. Sourcing of Russian crude oil through long term contracts is a part of India’s strategy for diversifying the country’s crude oil supplies from non-OPEC countries, and a part of the five-year roadmap for bilateral cooperation in the hydrocarbons sector that was signed during Hon’ble Prime Minister Shri Narendra Modi’s visit to Vladivostok last September

.The addition of Russia as a new source for crude oil imports by India’s largest refiner will go a long way in mitigating the risks arising out of geo-political disruptions. The new arrangement would also usher in price stability and energy security for India, which is witnessing robust growth in demand for petroleum products. It will also open up the avenues for other PSU oil refiners to enter into similar term contracts for import of Russian crude oil

Both sides agreed to take forward mutually aligned priorities, including preparing a roadmap for Indian investments in the Eastern Cluster projects of Russia. It was noted that the four Indian oil and gas Public Sector Undertakings (PSUs) have already submitted the Expression of Interest to Rosneft to participate in the project. In order to negotiate the terms of Indian companies entering Vostok Oil in the shortest time possible, it was agreed to create a working group of representatives of Russian and Indian companies.

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During the meeting, both leaders reviewed the ongoing investments between Indian oil & gas PSUs and Rosneft, and discussed further enhancing energy cooperation and strengthening hydrocarbons engagement, both on investment front as well as sourcing natural gas and crude oil. During the meeting, Shri Pradhan said thatHydrocarbon is an important pillar of the bilateral Strategic Partnership. “Indian oil and gas companies value their association with Rosneft, one of the important companies partnering in India’s energy security objectives.” Both sides agreed to take forward mutually aligned priorities discussed during Shri Pradhan’s visit to Russia in September last year, including preparing a road-map for Indian investments in the Eastern Cluster projects of Russia specially in the Arctic.  Shri Pradhan said that Indian companies especially Engineers India Limited have considerable expertise in providing engineering consultancy as well as executing mega projects across the hydrocarbon value chain.  Mr. Sechin indicated his readiness to intensify cooperation further to strengthen India’s energy security and work jointly with Indian oil and gas companies.

The crude oil, being sourced under the contract, will be loaded in Suezmax vessels at Novorossiysk port of Russia and will come to India, bypassing Straits of Hormuz.

About Ashok Palit

Ashok Palit has completed his graduation from Upendranath College Soro, Balasore and post graduation from Utkal University in Odia Language and literture.. He has also carved out a niche for himself as a scribe of eminence after joining the profession in 1988. He is also an independent media production professional. He brings loads of experience to Advanced Media, Ashok Palit as a cineaste has been active in film criticism for over three decades. As a film society activist, he soared to eminence for his profound commitment to the art film appreciation and aesthetics of cinema. His mode of discourse is often erudite but always lucid and comprehensible marked by a perfect acumen so rare in the field. A film aesthete with an immense fond of critical sensibilities, he wrote about growth and development of odia cinema in New Indian Express, The Times of India, The Hindustan Times, The Asian Age and Screen. He has been working as an Editor for Cine Samaya from 2002-2004.. He had made solid contribution on cinema in many odia Dailies and weekly such as Samaj, Prajatantra, Dharatri, Samaya, Satabadi, and weekly Samaya.

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