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AUG 13 2012

Iran crude: MRPL looking at other sourcing options

  • Economic Times, ET Bureau / Hyderabad
  • Created: Mon 13th AUG 2012

MRPL has said that it is in the process of evolving alternative arrangements for sourcing crude. This comes in the wake of issues surrounding import of Iran crude.

The annual report of MRPL for 2011-12 said the company has been continuously diversifying the sources of procurement of crude by adding more countries and crude.

Initially it had only term contracts with Iran. According to P.P. Upadhya, Managing Director, the company has been importing Iran crude since 1996. The refinery configuration mainly depends upon Iran crude.

At present, crude oil is being procured from Saudi, Abu Dhabi, Iran and Kuwait. Bombay High, Nile blend and Sakhalin crude from ONGC group companies are also being procured on ‘arm’s length’ basis, it said.

During 2011-12, MRPL processed three new crude oils from Agambi, Coco and Mellitah.

Mentioning that the company continues to expand the crude basket, the annual report said MRPL is in the process of evolving alternative arrangements for sourcing crude, with the help of other industry members under the guidance of Union Ministry of Petroleum and Natural Gas, in case the US and European sanctions are fully functional and sourcing of Iran crude becomes difficult.

It said that the company is facing difficulty in remitting for the import of crude oil from Iran due to European Union sanctions and dismantling of Asian Clearing Union by Reserve Bank of India with effect from December 23, 2010.

Tags

Mangalore Refinery And Petrochemicals Limited Gas Natural Gas ONGC Bank of India Asia Petrol United States Petroleum Prospecting Licence Iran Europe

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