New Delhi: Operator of the world’s biggest oil refining complex, Reliance Industries Ltd, has ordered around 15 million barrels of Russian oil, quoting sources news agency Reuters has reported.
This is the first time RIL has ordered crude oil in such large quantity from Russia since Moscow invaded Ukraine in February, the sources said, adding that for the for the June quarter, the conglomerate has bought an average 5 million barrels per month.
Indian refiners, including Reliance, rarely bought oil from Russia because of high freight charges. But as Russia invaded Ukraine, the US and other western European countries have imposed harsh sanctions on Moscow thus led to many oil importers to shun trade with Russia. This has resulted in lowering crude oil rates by Moscow to record discounted levels.
As of now Indian refiners have snapped up the cheap barrels as India is hit hard by high crude oil prices.
India, the world's third-biggest oil importer and consumer, imports 85 per cent of its 5 million barrels per day oil needs.
According to the flow of tankers’ data by Refinitiv, a supply of about 8 million barrels of Russian oil, mainly Urals, at the Reliance-operated Sikka port in India, for arrival between April 5 and May 9.
The report said that most of these barrels are supplied by Russian trader Litasco. Reliance is buying Russian oil on delivered basis, said the oil traders.
Refinitiv data revealed that Reliance is scheduled to receive its first parcel of Russia’s ESPO oil in early May. China mostly gets this grade of oil.
Mukesh Ambani’s Reliance runs two refineries at the Jamnagar complex in Gujarat which can process 1.4 million barrels per day (bpd) of oil daily.