HPCL buys first Reliance crude cargo

HPCL buys first Reliance crude cargo

New Delhi: “State-run Hindustan Petroleum Corporation (HPCL) has bought the first 450,000 barrel crude cargo from Reliance Industries’ east coast block in a spot deal," HPCL’s director of refineries M.A. Tankiwala said.

“We have been indicated that the first cargo will reach at our Vizag refinery between 17-20 November," he said.

Tankiwala refused to give price details as the agreement is yet to be signed by the heads of the two firms, but sources at both companies said a deal had been agreed at a discount of $5.34 a barrel to Nigerian grade Bonny Light.

Reliance owns 90% of the D-6 block in the hydrocarbon-rich Krishna Godavari basin, while Canada’s Niko Resources has the rest.

Reliance began producing oil from the block in mid-September and aims to produce gas from early next year.

HPCL runs a 110,000-bpd refinery in Mumbai and a 150,000 bpd plant at Vizag on the east coast.