IndianOil receives first crude oil cargo from the US

Mumbai, Oct 2: Indian Oil Corp. (IndianOil) on Monday said it has received its first US crude oil cargo of 1.6 million barrels.

According to the company, it received the shipment at Paradip port in Odisha.

"MT New Prosperity, a Very Large Crude Carrier (VLCC), of capacity 2 million barrels of crude, left US Gulf Coast on 19th August and arrived at Paradip port today," the company said in a statement.

"IndianOil will process the crude at its east-coast base refineries, located at Paradip, Haldia, Barauni and Bongaigaon."

IndianOil has placed a cumulative order of 3.9 million barrels from the US.

The two other public sector refiners -- Bharat Petroleum and Hindustan Petroleum -- have also placed orders for about 2.95 million barrels and 1 million barrels, respectively, for their Kochi and Vizag refineries from the US.

"The total volume of the crude presently contracted by Indian public sector refineries is, therefore, 7.85 million barrels," the company said.

"The three refiners are sourcing sweet, sour and heavy crudes for their refineries which are equipped to handle complex mix of crude oils."

In recent years, Indian public and private companies have also made sizeable investments in US shale gas assets with a total investment of approximately $5 billion.

Prime Minister Narendra Modi, during his visit to the US in June 2017, had mentioned that India was looking to strengthen its hydrocarbon engagement with US.

The deal to source crude from the US came through shortly after the visit of the PM to the US.

"Rich in hydrocarbon assets, the US can be a significant supplier for Indian demand," the company added.

This is one of the first shipments to India since the United States stopped oil exports in 1975.