Coal News We love to talk!

DEC 05 2018

Indian Oil Corp issues 5-year tanker tender to import Iraqi oil, document reveals

  • Economic Times, ET Bureau / Hyderabad
  • Created: Wed 05th DEC 2018

 

India’s top refiner, Indian Oil Corp (IOC), has issued a global tender to charter scrubber-fitted oil tankers for at least five years to import Iraqi oil, a tender document seen by Reuters showed.

 

The tender says Indian shippers will be given first right of refusal for the contract as the nation seeks to boost its shipping industry. It is seeking bids from vessels that are less than 10-years old. A scrubber is a product that strips out sulphur emissions and, in doing so, can allow shippers to use dirtier fuel oil but still meet new global requirements for lower emissions.

 

IOC and the country’s second biggest state-owned refiner, Bharat Petroleum Corp (BPCL), last year also issued similar tenders seeking vessels for five years. The two refiners, however, could not award the tenders as there were very few bids by shippers because at the time they were seeking clarity on the new fuel emissions requirements.

 

The International Maritime Organization (IMO) is introducing the rules on marine fuels from the beginning of 2020, limiting the sulphur content to 0.5 percent, down substantially from the current 3.5 percent, to curb shipping pollution.

 

IOC’s tender document is seeking global bids for a very large crude carrier (VLCC) capable of carrying Iraqi Basra Light and Basra Heavy crude for five years and grants Indian shippers the right of first refusal.

 

BPCL will soon issue a domestic tender seeking to hire Suezmax tankers capable of carrying up to 1 million barrels of oil for a five-year period, two industry sources said.

 

The IMO says that when the new rules come into force it will ban ships that do not have scrubbers from carrying any fuel oil, making it easier to catch cheaters.

 

The duration of the IOC contract can be extended by another two years to a total of seven, the tender document showed. The tender will close on January 7 and bids will remain valid until March 11, the document showed.

Tags

TOTAL Oil Import Petroleum Bharat Petroleum Corporation Limited India BPCL

Related News

  • NTPC Q3 net profit declines 19% to Rs 2,493 cr  Read more
  • Government to rank oil and gas fields to boost output, promote Competition  Read more
  • Removing IOC Paradip refinery's tax concessions to hit biz sentiment: CII  Read more
  • Opec price war in Asia intensifies as oil falls below $50  Read more
  • Indian state run OMCs to set up largest refinery in Maharashtra  Read more
  • Tamil Nadu farmers hail oil ministry's decision to cancel CBM project  Read more
  • HPCL, GSPC deals to hit oil PSU dividends in FY18 by at least 17%  Read more
  • Reliance Industries Ltd on the surge, closes in on market cap crown  Read more
  • Dharmendra Pradhan assures Mauritius of continuous support in meeting energy requirement  Read more
  • Mega refinery, petrochemicals hub proposed in Maharashtra  Read more