HPCL to double oil imports from Saudi Arabia next fiscal
As credit demand slackened, domestic banks investments in government-backed securities grew faster than their loan portfolios, the central bank said.
State-owned Hindustan Petroleum Corp Ltd (HPCL) will double crude oil imports from Saudi Arabia next fiscal and cut purchases from Iran by over 14 per cent.
HPCL in 2012-13 has proposed to buy 3.5 million tonnes of crude oil from Saudi Aramco of Saudi Arabia against 1.75 million tonnes of oil bought in current year, company sources said.
It will cut down purchase from Iran to 3 million tonne in the year beginning April from 3.5 million tonne in the current year.
Indian refiners fear problems in paying for crude oil they buy from Iran after the US and European Union imposed fresh sanctions to deter the Islamic regime for its nuclear programme. The refiners are cutting imports from Iran by 10 per cent next fiscal.
Sources said HPCL will keep purchases from Abu Dhabi, Kuwait, Iraq and Malaysia unchanged in next fiscal.
It will buy 2.25 million tonne from Abu Dhabi National Oil Corp, 2.25 million tonne from State Oil Marketing Organization (SOMO) of Iraq, 1 million tonne from Kuwait Petroleum Corp (KPC) and 1.25 million tonne from Petronas of Malaysia.
HPCL's total crude oil requirement for 2012-13 has been estimated at 18 million tonnes . Out of this, 14.25 million tons of crude is proposed to be imported through a combination of term and spot contracts, while the balance 3.75 million tonnes will be sourced from indigenous fields.
Of the imported crude, 11.25 million tons will be procured from National Oil Companies (NOCs) through term contracts, while the balance 3 million tons of crude will be sourced from the Spot Market.
Mangalore Refinery (MRPL) is the India biggest buyer of Iranian oil at 7.1 million tonne in current fiscal while Essar Oil buys 5 million tonne . Indian Oil Corp (IOC) has a term contract to buy 1.5 million tonne while Bharat Petroleum (BPCL) could not commence its 1 million tonne term imports from Iran this fsical because it could not open an account with Turkey's Halkbank for payment to NIOC.