Shri Aiyar’s efforts to diversify crude sources bear fruits
BPCL TIES UP FIRST EVER AZERI CRUDE IMPORTS
In consequence of concerted efforts of Shri Mani Shankar Aiyar, Minister of Petroleum and Natural Gas to diversify sources of crude supplies to India and his visits to Azerbaijan and Turkey, BPCL, a Navaratna marketing PSU has for the first time finalised import of Azeri light crude oil from Caspian Sea region in Azerbaijan.
A quantity of 600,000 barrels (about 80TMT) of crude oil will be transported from Azerbaijan through Baku-Subsa crude pipeline in October this year and would be loaded in the tanker/vessel at Subsa port(Georgia) at Black Sea. The ship would travel from Black Sea to Mediterranean (through Bosphorus, Istanbul, Turkey) and to Red sea (through Suez canal) to BPCL’s Mumbai Refinery. It may be recalled that Shri Aiyar had wide ranging discussions with the authorities in Azerbaijan during his visit in June 2005 and also with Turkish authorities during his visit in late June 2005. Sourcing crude oil for meeting Indian requirements from an expanded basket was one of the key issues discussed during these visits. Azeri light crude oil is a sweat crude oil with a sulphur content of 0.1% by weight.
India currently imports about 75% of its crude oil requirement and imported a quantity of about 96 million tonnes during 2004-2005 mainly from the West-Asia and Africa. This step opens up new possibilities of cooperation with the countries in this region particularly in the shape of opening a new shipment route for crude oil bound to India.
The crude oil production in Azerbaijan is currently around 240,000 bpd and besides western countries, has been procured by Chinese and Australia refineries in the eastern hemisphere. The crude oil has been procured for the first time by any Indian refinery and the same may prove to be an alternate to other sweet crudes (concentrated mainly in Nigeria and Far East) when the production is slated to increase substantially in future peaking to around 1.2 million barrels per day by 2010.
The 1760 KM long BTC (Baku-Tbilsi-Ceyhan) pipeline project has been completed for transportation of Azeri light crude oil. Currently, the line-filling activity is in progress and the pipeline is expected to commence operation by January 2006 which would facilitate greater procurement of crude oil by Indian companies from Caspian region.
RCJ/GS/Press Release/Diversify crude (09.09.2005)
(Release ID :11907)