Indian Oil Corporation Limited will import up to 3 million tonnes of crude oil from the United States of America in the next financial year.
“IndianOil 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 contract was finalised on Friday, February 15, 2019,” an IndianOil statement said.
“The approximate value of the contract works out to $1.5 billion. This is the first term contract finalised by any Indian PSU oil company for import of US origin crude oil grades,” the statement added.
The first consignment of US crude to India landed Paradip, Odisha in October 2017. Since then, India’s crude oil imports from the US during the April to December 2018 almost tripled to 4.58 million tonne, compared to the 1.16 million tonne imported during the same period in 2017
BusinessLine reported earlier that India had imported oil and gas worth over $3 billion from the United States (US) in 2018 alone. India has also committed to purchase $5 billion worth of oil and gas from the United States (US) per annum according to India’s Ambassador to the US, Harsh Vardhan Shringla.