India on Monday received its first ever shipment crude oil from the US, with State-owned Indian Oil Corporation Ltd importing 1.6 million barrels at the Paradip Port in Odisha. The move comes after US resumed its oil exports last year.
IndianOil will process this crude at its refineries in the East: at Paradip, Haldia, Barauni, and Bongaigaon.
“IndianOil, which became the first Indian public sector refiner from India to source US crude, has placed a cumulative order of 3.9 million barrels from the US,” it said.
Public sector refiners Bharat Petroleum and Hindustan Petroleum have also placed orders from the US for about 2.95 million barrels and 1 million barrels respectively, for their Kochi and Vizag refineries.
The total volume of the crude presently contracted by Indian public sector refineries is, therefore, 7.85 million barrels. The three refiners are sourcing sweet, sour and heavy crude for their refineries which are equipped to handle complex mix of crude oils.
Indian oil companies have already invested over $5 billion in US shale assets. Indian companies have also contracted MMTPA of LNG from the US and the first shipment is expected to be delivered to India in January 2018.
The deal to source crude from the US fructified just after Prime Minister Narendra Modi’s visit to the US in June.