Page 145 - CW E-Magazine (4-6-2024)

Hydrocarbons

SOURCING STRATEGY
Oil Minister advocates for long-term crude oil

discounts from Russia

Oil Minister H.S. Puri said there is on crude oil from Russia, Mr. Puri said, to purchase of Russian crude are likely
no reason why domestic refi ners should “I don’t know whether this report is to have dipped to $2-bn in September-
not want to negotiate a “good discount” correct or not because many of these February FY24 from $5.8-bn in
on a long-term basis with Russia, are private players.” April-August FY24.
emphasising that India holds a key card
of high crude oil consumption. Russian discounts “With India’s oil import dependency
Russia has slashed discounts on expected to remain high, if the dis-
The world’s third-largest crude oil crude oil, particularly on Urals, in the counts on purchases of Russian crude
importer processed 5.24-million bar- past year. According to ICRA, India persist at the prevailing low levels,
rels per day (mbpd) on a provisional saved around $5.1-bn in FY23 and ICRA expects India’s net oil import bill
basis in FY24, compared to 5.13-mbpd $7.9-bn in 11M FY24 on its oil import to widen to $101-104-billion in FY25
in FY23 and 4.85-mbpd in FY22. The bill due to discounts on Russian from $96.1-billion in FY24, assuming
country consumes roughly 5-mbpd. cargoes. However, it estimates that the an average crude oil price of $85 per
extent of monthly discounts relative barrel in the fi scal. Additionally, any
The minister pointed out that inter- to price has narrowed sharply over escalation in the Iran-Israel confl ict and
national oil and gas markets are facing the fi scal (FY24), to around 8% on an an associated rise in crude oil prices
uncertainty due to geopolitical con- average in September-February FY24 could impart an upward pressure on the
fl icts. When asked about Indian refi ners from around 23% in April-August value of net oil imports in the current
forming a cartel to negotiate discounts FY24. Consequently, savings related fi scal year,” it added.

LISTED COMPANY REQUIREMENT
IOC, GAIL, ONGC fi ned for fourth straight quarter

for failure to appoint directors

Several state-owned oil and gas 31, 2024, but, were quick to point
giants have been slapped with fi nes for out that appointment of directors was
the fourth straight quarter for failing to done by the government and they had
meet listing requirements of having the no role in it.
requisite number of directors on their
board. The companies had faced fi nes for
the same reason the previous three
Stock exchanges imposed a quarters as well.
cumulative fi ne of Rs. 34-lakhs on oil
refi ning and fuel marketing giants, IOC, HPCL, BPCL, GAIL, OIL and
Indian Oil Corporation (IOC), Hindustan January-March quarter, stock exchange MRPL in separate fi lings said they have
Petroleum Corporation Ltd. (HPCL) fi lings showed. been slapped with a fi ne of Rs. 5,36,900
and Bharat Petroleum Corporation each for the fourth quarter. ONGC faced
Ltd. (BPCL), explorers Oil and Natu- In separate fi lings, the companies a fi ne of Rs. 1,82,900. Listing norms
ral Gas Corporation (ONGC) and Oil detailed the fi nes imposed by the require companies to have indepen-
India Ltd. (OIL), gas utility GAIL, BSE and NSE for either not having dent directors in the same proportion as
and refi ner Mangalore Refi nery and the requisite number of independent executive or functional directors. They
Petrochemicals Ltd. (MRPL), for not directors or the mandated women are also required to have at least one
meeting the listing requirement in the director in the quarter ended March woman director on the board.

Chemical Weekly June 4, 2024 145

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