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HPCL to buy more Iraqi oil on longer credit terms

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Reuters NEW DELHI
Last Updated : Feb 11 2014 | 8:11 PM IST

NEW DELHI (Reuters) - Hindustan Petroleum Corp Ltd aims to raise crude imports from Iraq's national oil company by 8 percent to about 65,000 barrels per day (bpd) in 2014/15 as it takes up better terms offered by Baghdad.

Iraq is offering 60 days' credit on purchases, up from 30 days previously, HPCL's director of refineries B. K. Namdeo told Reuters.

HPCL bought 60,000 bpd from Iraq in the year ending March 31, 2014.

Iraq has also confirmed the extended credit period, which it first suggested in November, to Indian Oil Corporation (IOC) , a company source said.

IOC has raised volumes from Iraq by 5 percent in 2014 to 284,000 bpd.

HPCL will not be buying Iranian oil in the fiscal year to March 2015 unless reinsurance for cover on refineries is available, Namdeo added.

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"This year we are not importing anything (from Iran). If the insurance issue is resolved, then only we will take Iranian oil in 2014/15," he said.

HPCL halted purchases from Iran in April after insurers did not extend coverage for processing oil from the sanctions-hit nation.

Although Iran has reached a deal with world powers over its nuclear programme which has meant the relaxation of some sanctions, insurance and reinsurance for processing its crude has not yet been addressed.

(Reporting by Nidhi Verma; Editing by William Hardy)

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First Published: Feb 11 2014 | 7:59 PM IST

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