NEW DELHI: The US crude oil import to India could boost bilateral trade by up to $2 billion, the US Embassy said in a statement after the first shipment reached the East Coast on Monday.
Indian Oil received the first cargo of 1.6 million barrels of crude oil at the Paradip Port, and plans to process this at its refineries in the eastern region, the company said in a statement.
Indian Oil has placed a cumulative order of 3.9 million barrels of US crude while Bharat PetroleumBSE -0.36 % and Hindustan PetroleumBSE -0.15 % have ordered 2.95 million barrels and 1 million barrels respectively for their Kochi and Vizag refineries from the US. State refiners together have contracted 7.85 million barrels of US crude, Indian Oil said.
The three refiners are sourcing sweet, sour and heavy crudes for their refineries which are equipped to handle complex mix of crude oils.
The US stopped oil exports in 1975 and has only begun exporting now following the shale revolution that dramatically raised its output, prompting it to turn a net exporter. Heavy oil consumers like India, mostly dependent on supplies from the Middle-East, are attractive for US producers.
"The United States and India are elevating our cooperation in the field of energy, including plans forcleaner fossil fuels, renewables, nuclear, and cutting edge storage and energy efficiency technologies. We look forward to working together on further sales of US crude and exploring opportunities to expand the role of natural gas in India," MaryKay Carlson, Charge d'Affaires at the US Embassy in New Delhi said.
Source: economictimes.indiatimes.com