New Delhi / Mexico: Indian Oil Corp.
(IOC), the country’s top refiner, will increase the purchase of crude oil from Iraq by 11.5% in 2022 to 390,000 barrels per day (BPD), in part to redeem the shortages of Mexico and the possibility of cutting supplies From Kuwait, two sources were familiar with the problem.
Iraq is the top supplier of oil to India and the market share there will rise because other refiners Hindustan Petroleum Corp will also buy more crude oil from the Middle East countries.
India is the third largest oil importer in the world.
The IOC has used a higher volume than Iraq because Mexico limits inventory because it opens new refineries, the source said.
Read more Refiner India also expects the oil supply from Kuwait to be cut in the next fiscal year starting in April because Kuwait aims to start 615,000 BPD Al-Zour refineries this year, the sources said.
Last year, Kuwait initially signed a nine-month oil supply contract with Indian distillation but then extended him three months to 2022 due to the delay in the commissioning of the Al-Zour refinery.
The Mexican National Oil Company has agreed to supply 22,000 BPD (1.1 million tons) of oil to the IOC, said the source.
Last year, the IOC had a term agreement to buy 350,000 BPD (17.5 million tons) from Iraq Somo oil marketing company, and around 40,000 BPD (2 million tons) from Pemex, one source said.
IOC, SOMO, Iraq’s Ministry of Oil and Pemex did not respond to Reuters comment requests.
As OPEC’s second largest oil producer, Iraq will be able to increase export as much as 250,000 BPD from the second quarter after completing the installation of the pump station in the Gulf port, the Iraqi oil source said.