The government has asked state-run oil companies to increase long-term import of crude from new suppliers such as Equatorial Guinea, renegotiate term contracts with Gulf-based producers, and rope in private refiners to collectively bargain better deals with oil producers, two officials aware of the matter said on condition of anonymity.
In order to negotiate better terms with oil producers, public sector oil marketing companies (OMCs) have been advised to leverage their collective bargaining power for long-term oil supply contracts and also rope in private refiners, the officials added. “Equatoria Guinea has a big oil discovery; one refiner has already lifted the first consignment. We are discussing to import more oil from there. Besides, focus is being shifted to the US and Latin America as the Gulf countries are resorting to cartelisation and unfair trade practices,” said a high-ranking official with direct knowledge of the matter.
“India is the third largest crude oil importer in the world. We have immense collective bargaining power.
