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Tue 28 Jul 2009, 07:24 GMT

IOC sells mid-August 380-cst cargo


Indian refiner reaches a deal for the sale of 35,000 tonnes of fuel oil.

Refiner and bunker supplier Indian Oil Corporation Ltd. (IOC) has sold a 35,000-tonne cargo of 380-centistoke (cst) fuel oil for loading mid-August, Reuters reports.

The state-owned firm is said to have reached a deal with Petrosummit at a discount of between $4-$5 per tonne to the IOC formula on a free-on-board (FOB) basis.

The cargo is scheduled for lifting from the southeastern port of Chennai on August 13-16.

IOC previously sold a 30,000-tonne cargo of 380-cst fuel oil to Westport at a discount reported to be $5.50 per tonne to the IOC formula, FOB. The parcel was due to be lifted on July 13-15, also from Chennai.

In a previous deal, IOC was said to have sold a 380-cst cargo at a larger discount of $6-7 per tonne to the IOC formula, FOB, to oil major BP. The 380-cst lot was scheduled for loading on June 26-29.

In May, IOC sold a 30,000-tonne parcel to BB Energy at a discount of $6 a tonne to the IOC formula, FOB.

Meanwhile, in the bunker supply market, IOC announced in May that it had commenced supplying 380-cst to ships calling at the port of Chennai.

The company is utilizing 380-cst product from the 185,000 barrels-per-day (bpd) Manali Refinery, Chennai, which is operated by its subsidiary Chennai Petroleum Corporation Ltd (CPCL).

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.

Last month, industry sources reported that CPCL is looking to substantially increase its bunker sales volumes at Chennai over the next 12 months.

According to market estimates, CPCL's bunker sales at Chennai are currently at around 5,000 tonnes per month, and the company is reported to have the capacity raise the amount according to market demand. IOC is said to be looking to increase sales by 100 percent within a year to around 10,000 tonnes.

Leading marine fuels supplier Chemoil has also announced that it intends to begin supplying at Chennai by the end of the year

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