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HPCL says buys first Reliance crude cargo

Posted by Yogesh on Tuesday, 11 November, 2008

NEW DELHI, Nov 11 (Reuters) – India’s state-run Hindustan Petroleum Corp has bought the first 450,000 barrel crude cargo from Reliance Industries’ east coast block in a spot deal, HPCL’s director of refineries said on Tuesday.

“We have been indicated that the first cargo will reach at our Vizag refinery between November 17-20,” M.A. Tankiwala told Reuters.

Tankiwala refused to give price details as the agreement is yet to be signed by the heads of the two firms, but sources at both companies said a deal had been agreed at a discount of $5.34 a barrel to Nigerian grade Bonny Light.

Reliance owns 90 percent of the D-6 block in the hydrocarbon-rich Krishna Godavari basin, while Canada’s Niko Resources NKO.T has the rest.

Reliance began producing oil from the block in mid-September and aims to produce gas from early next year.

HPCL runs a 110,000-bpd refinery in Mumbai and a 150,000 bpd plant at Vizag on the east coast.Source Reuters

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