IOC signs $1.5 billion deal to buy US crude oil
NEW DELHI: Indian Oil, country’s top refiner, has struck a $1.5 billion deal to buy oil from the US, the company said on Monday in an unusual announcement just a day before the Crown Prince of Saudi Arabia begins his India visit.
“Indian Oil has finalised a term contract for import of up to 3 million tonnes of crude oil of US origin grades as a part of its strategy to diversify term crude sources,” the company said in a statement. “This is the first term contract finalised by any Indian PSU oil company for import of US origin crude oil grades.”
At current prices, the year-long contract beginning April is estimated to be worth $1.5 billion although actual value would depend on timings of delivery of cargoes. The contract was finalised on February 15.
