Bharat Petroleum Corp Ltd (BPCL) is set to issue a four-month tender next week to purchase US West Texas Intermediate (WTI) crude, a source familiar with the matter revealed on Friday. The move is aimed at securing more cost-effective oil from the world’s largest producer.
BPCL is looking to procure one million barrels of WTI crude per month for deliveries spanning four months, beginning in May or June. The company has previously awarded similar tenders, with European oil major BP securing last year’s contract.
BPCL, which operates three refineries with a combined processing capacity of 706,000 barrels per day, frequently sources crude oil from the US. Recent data indicates that India’s crude imports from the US reached their highest levels in over two years. This surge follows tighter sanctions imposed by the US on Russian oil producers and shipping firms.
India is aiming to boost its energy imports from the US to $25 billion soon, up from approximately $15 billion last year. In February, the US exported about 357,000 barrels per day (bpd) of crude to India, compared to 221,000 bpd in the previous year, according to ship tracking data from Kpler.
BPCL has yet to respond to requests for comment regarding the upcoming tender.