Bharat Petroleum Corp, India’s second-biggest state refiner, is seeking a 27 per cent increase in its oil deal with Saudi Arabia for 2012/13 from the previous year to replace a cut in imports from sanctions-hit Iran, industry sources said on Wednesday.
China, India and Japan are planning cuts of at least 10 per cent in Iranian crude imports as tightening US tightening U.S. sanctions make it difficult for the top Asian buyers to keep doing business with the OPEC producer.
Saudi Arabia is the biggest oil supplier to India, the world’s fourth-biggest oil consumer, and is the only oil producer with significant spare capacity to replace any fall in supply from its regional rival Iran.
All the sources have direct knowledge of the matter but asked not to be identified as they were not authorised to speak to the media. A BPCL spokesman declined to comment.
King Abdullah of Saudi Arabia offered additional barrels to India earlier this month after Oil Minister Ali al-Naimi said Riyadh could increase production by about 2 million barrels per day (bpd) almost immediately. reuters
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