BPCL to get first Iraqi crude cargo as Hormuz disruption persists

Mumbai: State-run Bharat Petroleum Corp (BPCL) on Thursday said it will receive its first Iraqi crude cargo in the next few days as it looks for alternative ways to secure supplies amid continued disruption in the key oil shipping route, the Strait of Hormuz. The company is also willing to buy more crude from Gulf suppliers on a free-on-board basis if ships are available.

The Iraqi cargo has crossed the Strait of Hormuz and is being moved towards Fujairah, where BPCL plans to carry out a ship-to-ship (STS) transfer. The company said the STS operation is expected to take place shortly.

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"Fortunately, we got the vessel. One vessel owner was ready to take the product and move to Fujairah and do the STS transfer," Vetsa Ramakrishna Gupta, director finance, told reporters after BPCL's annual shareholders' meeting on Thursday.

The company typically relies on a mix of term contracts and spot purchases to meet its crude requirements. Around 60% of its crude requirement is currently being procured through the spot market, according to the company.

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BPCL's move to lift Iraqi crude through Hormuz comes at a time when the strait remains under pressure following the Iran war. The disruption has forced Indian refiners to diversify crude sourcing and explore alternative shipping arrangements to maintain supplies.