Kochi: The Kochi refinery of public-sector oil refiner, Bharat Petroleum Corporation Limited, will receive its first crude oil consignment from the US on October 5, Thursday, sources reported.
Together the two other public sector refiners, Bharat Petroleum and Hindustan Petroleum, will receive about 2.95 million barrels and 1 million barrels, respectively, for their Kochi and Vizag refineries, from the US.
On Monday, Indian Oil Corp. (IndianOil), said it has received its first US crude oil cargo of 1.6 million barrels.
The shipment was reportedly received at the Paradip port in Odisha.
"IndianOil will process the crude at its east-coast base refineries, located at Paradip, Haldia, Barauni and Bongaigaon," the company said in a statement.
IndianOil has placed a cumulative order of 3.9 million barrels from the US.
"The total volume of the crude presently contracted by Indian public sector refineries is, therefore, 7.85 million barrels," the company said.
The three public sector refiners are sourcing sweet, sour and heavy crudes for their refineries which are equipped to handle complex mix of crude oils.
In recent years, Indian public and private companies have also made sizable investments in US shale gas assets with a total investment of approximately $5 billion.
Prime Minister Narendra Modi, during his visit to the US in June 2017, had mentioned that India was looking to strengthen its hydrocarbon engagement with US.
The deal to source crude from the US came through shortly after the visit of the PM to the US.
"Rich in hydrocarbon assets, the US can be a significant supplier for Indian demand," the company added.
This is one of the first shipments to India since the United States stopped oil exports in 1975.
Read more at: Latest in business | Women should demand toilets, 6% GDP lost to unsanitary conditions, says Venkaiah