New Delhi: To safeguard crude oil supplies from Russia in the backdrop of the EU sanctions, Indian Oil Marketing Companies (OMCs) have taken a number of steps, like undertaking term contract for import of Russian crude either through Delivered at Port (DAP) basis or Cost, Insurance and Freight (CIF) basis, the Ministry of Petroleum and Natural Gas has told the Cabinet. According to a document reviewed by PSU Watch, the ministry also said that PSUs have been diversifying the sources of crude oil import to ensure energy security.
On DAP basis, the seller is responsible for arranging carriage and for delivering the goods, ready for unloading from the arriving means of transport, at the said place. On the other hand, CIF basis means that the cost of Cost, Insurance and Freight are covered by the seller.
The ministry said that Indian companies have till date not faced any issues with respect to the delivery of crude oil from Russia. "In this context, the companies are in discussions with their counterparts for rolling over of term contracts for the next year as well," the document said.
While stating that PSUs have been diversifying sources of crude oil import contracts, the ministry said, "Some of the important recent developments are term contracts with Colombia's Ecopetrol and Brazil's Petrobras."
The ministry said that at the recent India-Russia Inter-Governmental Commission on Trade, Economic, Scientific, Technical and Cultural Cooperation in Moscow, India brought up the issue of non-performance of contractual stipulations by Gazprom with respect to their contract with GAIL for the supply of 2.85 MMTPA LNG.
India also conveyed to Russia the continued interest to engage more deeply with Russia, including through increased offtake of Russian crude and investment in Russian oil and gas assets, the ministry told the Cabinet.
(PSU Watch– India's Business News centre that places the spotlight on PSUs, Bureaucracy, Defence and Public Policy is now on Google News. Click here to follow. Also, join PSU Watch Channel in your Telegram. You may also follow us on Twitter here and stay updated.)