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State-owned Indian Oil Corporation (IOC) has sold two 30,000 metric tonne cargoes of fuel oil via tender for delivery during the month of February, Reuters reports.

The two parcels of 380-centistoke (cst) fuel oil with 4.5 percent sulphur are scheduled for loading from Chennai on February 4-7 and February 19-22.

The cargoes are reported to have been sold to oil major BP at a discount of $12 per tonne to the IOC formula, according to trading sources. The price represents a lower discount compared to other recent 380-cst tenders.

In previous deals IOC sold two 30,000-tonne parcels of 380-cst fuel oil for loading in January at between $16.50 and $17.50 per tonne to the IOC formula. Emirates National Oil Co (ENOC) was reported to be the purchaser of the cargo.

In November 2008, the discount was said to be around $20 per tonne to Middle East spot quotes when IOC sold a 30,000 metric tonne cargo of 380-cst fuel oil to Trafigura, one of the world's largest independent commodity trading companies.

IOC operates refineries in Assam, Gujarat, West Bengal, Uttar Pradesh, Madras and Bihar and is the leading provider of fuel oil for the bunker market, supplying both marine fuel and lubricants to customers in all major Indian ports.

The company sold 58.3 million tonnes of petroleum products during 2007-08, registering a 8.7% growth in volumes as compared to the previous year.