Indian Oil Corporation Limited (IOC), one of the country's top oil firms, purchased 3 million barrels of Russian Ural from Geneva-based energy and commodities trader Vitol for delivery in May, source said, adding that since Moscow began its assault of Ukraine on February 24, India has made its first purchase of Russian grade Ural.
According to the report's sources, IOC did not have any issues paying for the cargo because "oil as a commodity is not banned" and it was not dealing with a sanctioned organisation. Vitol sold the cargoes at a USD 20 to25 per barrel discount to dated Brent. It has also purchased 2 million barrels of Abu Dhabi's Murban crude, as well as one million barrels of Nigeria's Akpo and Forcados, and one million barrels of Cameroon's Kole.
Indian Oil Corporation had previously stated in late February that it will buy Russian oil on a "delivered basis" to avoid any complications with vessel repairs and insurance. IOC was reported to have purchased Russian Urals for the first time in two years on February 24, the day the Russian invasion of Ukraine began. IOC purchased 2 million barrels of Urals crude from European traders Vitol and Trafigura in a tender for high-sulphur oil, which will be delivered in April. The most recent Urals purchase will arrive in May.
Due to insurance risk, Indian Oil Corporation no longer accepts Russian crude oil and Kazakh CPC Blend cargoes on a free-on-board (FOB) basis. FOB stands for free on board, and it refers to whether the vendor or the customer is responsible for products that are damaged or destroyed during transportation.
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