The Indian Oil Corporation yesterday lifted its first 1 million barrels of Guyanese “Liza sweet crude” from the Liza Destiny FPSO offshore Guyana.
The shipment is expected to reach India on August 6th. This is an important step in diversification of crude sourcing for India and a possible future roadmap for India’s energy requirements, according to a Twitter post by the Indian High Commission here.
On June 30, Reuters reported that the Indian Oil Corp, the country’s top refiner, had made its first purchase of Guyana’s Liza light sweet crude as it seeks to diversify its crude purchases.
The 1 million-barrel cargo will sail on the Greece-flagged tanker Militos for India’s Paradip port, where it is set to arrive around August 8, according to Refinitiv data.
This would be a ‘trial cargo’, the source said, without giving details of pricing. The source said that India is in talks with Guyana’s government for an oil supply contract for state refiners.
IOC is the first Indian state refiner to buy Liza oil. Private refiner HPCL-Mittal Energy Ltd, a joint venture between state-run Hindustan Petroleum Corp (HPCL.NS) and steel tycoon L.N. Mittal, bought a million barrels of Liza grade in March.
India, the world’s third biggest oil importer and consumer, ships in more than 80% of its oil needs from overseas and relies heavily on the Middle East.
Earlier this year, Reuters said that India asked state refiners to expedite the diversification of crude sources after the Organization of Petroleum Exporting Countries and its allies, also known as OPEC+ failed to ease supply curbs, leading to a spike in global oil prices.
