Coal News We love to talk!

MAR 30 2017

Shell India, Bharat Petroleum may tie up for Singapore energy trading

  • Economic Times, ET Bureau / Hyderabad
  • Created: Thu 30th MAR 2017

Royal Dutch Shell Plc’s India unit and Bharat Petroleum Corp. Ltd (BPCL), the country’s second largest fuel retailer, may team up to help the latter set up an energy trading unit in Singapore, two officials aware of the development said.

A Singapore office has been in the works for BPCL to expand its global reach and participate in trading of crude oil, natural gas and energy derivatives, the two said on condition of anonymity.

“BPCL and Shell India are working together to develop a joint trading desk where Shell will support BPCL in terms of techniques, and talent training in trading,” said a senior official, one of the two, from an oil trading company aware of the development.

BPCL did not respond to an email seeking comment. Shell India, in an e-mailed response, said, “Shell does not respond to market speculation.”

“BPCL has reached out to Shell for training in oil trading. An international trading desk at Singapore would allow BPCL flexibility to enter and exit markets whenever required as operations are continuous and through the day,” the second official cited above said. “It will be a good platform to gather information on crude oil and ensure flexibility.”

Shell operates trading firms across the world, with its main trading and marketing locations being Houston, London, Dubai, Rotterdam and Singapore.The trading desk will help BPCL maximize gains on trading of crude oil and oil products, gas and energy derivatives.

“Trading is not an easy segment and currently BPCL lacks competencies in international trading operations. A tie-up with Shell would help it learn the tricks of the trade, train its officials and make use of investments in an international destination,” said the first official cited above.

Last April, the government had allowed the boards of state refiners—Indian Oil Corp. Ltd (IOCL), Hindustan Petroleum Corp. Ltd (HPCL), BPCL and Mangalore Refineries and Petrochemicals Ltd (MRPL)—to make quick spot purchases; avail of temporary discounts in the market and improve their refining margins. Spot purchases currently form 15-30% of the overall crude procurement of the oil marketing companies.

Last October, BPCL said that it plans to spend $6.75 billion in the next five years to increase its refining capacity by over 60% or 1.18 million barrels per day from the current 730,000 barrels per day.

Tags

Mangalore Refinery And Petrochemicals Limited Gas Natural Gas Oil Oil Marketing Companies Energy Indian Oil Corporation Ltd Shell Petroleum Hindustan Petroleum Corporation Limited Bharat Petroleum Corporation Limited Shell India Royal Dutch Shell Crude Oil Trading India BPCL

Related News

  • Ecologists six-year effort pays off  Read more
  • US barbs may block India’s pay path for Iran oil  Read more
  • Snapdeal to set up 1 MW rooftop project at warehouses  Read more
  • ONGC replaces govt nominee on HPCL board with own candidate  Read more
  • Petrol price cut by Rs 2.25 a litre, diesel by 42 paise  Read more
  • Global banks undermining Paris climate agreement goals, say reports  Read more
  • Monnet Ispat: NCLT appoints administrator for bankruptcy proceedings  Read more
  • Govt is said to mull selling HPCL at not more than 9% premium  Read more
  • International Solar Alliance expected to be formally ratified in December  Read more
  • Upstream oil companies like BPCL, HPCL and others to pay $11.4 billion fuel subsidy for 2013/14  Read more