Only India will start selling oil from strategic reserves after policy change

An employee holds a nose for refueling at a gas station in Mumbai, India, May 21, 2018 REUTERS / Francis Mascarenhas

NEW DELHI, Aug. 17 (Reuters) – India has launched a new policy to lease federal reserves for commercial rental land, according to three sources. .

Reuters reported last month that India had changed its policy and leased 30 percent of its 37 million barrel capacity to Indian and foreign companies, which manages federal oil reserves. Read more

Last year, ISRPLSS had to sell some of the cheap oil to make way for rent.

So far, Abu Dhabi National Petroleum Company (ADNOC) has leased one of the two equal-size camps on its 11-million-barrel Mangal SSS.

ISPRL is gradually releasing 8 million barrels of SSS to create space for government-run Mangalore Filter and Petroleum Chemicals (MRPL.NS) and Hindustan Petroleum Corporation (HCLNS). .

Prices have risen sharply since last year’s fall in oil prices as a result of the COVID-19 epidemic.

Following a reduction in production by the Organization of the Petroleum Exporting Countries (OPEC +) and its partners in September 2020, Saudi Arabian authorities will face higher prices from the Middle East by selling higher prices in September.

The two government filters, however, are purchased at ISRRL at a reduced price for the official sale price set by the producing countries.

India, the world’s third-largest oil importer and consumer, accounts for more than 80% of oil imports.

The goal is to increase personal participation in the two planned new institutions.

Although Indian oil exports from the CPR are relatively small, the UAE could reduce oil exports, sources said.

So far, ISRPL has started selling more than 5.5 million barrels of Zacchaeus oil to the MRPL from the United Arab Emirates.

Sources say the MRPL wants to empty the room by February because it wants to store a special level of waste in it.

MRP says it will rent 300,000 tons of land in Mangal, while HCL will take the same amount in the 7.5 million barrels of Vasag SSP, which contains Iraqi Basra oil.

The sources are HCL. It needs Iraqi oil, so it doesn’t need to sell in full.

In the next phase, ISRPL will lease a portion of the Padur storage at 2.5 million tons (more than 18 million barrels), containing a mixture of Arab oil.

Under the policy transition, the federal government will allow ISRPL to sell oil equivalent to 20% of the total SPR capacity in Indian markets. ISRRL has not yet decided when it will sell its oil in the market, sources said.

ISPRL, HPCL and MRPL did not immediately comment to Reuters.

Reporting by Nidi Verma; Edited by Barbara Lewis

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