Business

ONGC Sells Russian Chocolate Oil To HPCL, BPCL: Report


ONGC Videsh is the overseas investment arm of Oil and Gas Asli Corp.

New Delhi:

ONGC Videsh Ltd India has sold at least one cargo of Russian Sokol oil to Indian refiners Hindustan Petroleum Corp and Bharat Petroleum Corp after failing to attract interest in a tender earlier this month, sources familiar with the matter said.

Indian companies are taking Russian oil because it is available at huge discounts after some companies and countries avoided purchases from Moscow because of sanctions against Russia because of its Ukrainian aggression.

India, the world’s third largest consumer and importer of oil, does not ban Russian oil imports.

ONGC Videsh, the overseas investment arm of Oil and Natural Gas Corp., has an interest in Russia’s Sakhalin-1 project and sold its oil share of the project through a tender.

In the early March tender, ONGC Videsh did not get any bids for Sokol crude oil cargo for May loading.

Sources said HPCL and BPCL have been able to offer discounted prices for the cargo. This marks the first purchase of Sokol crude oil by HPCL. BPCL had previously purchased the grade in 2016.

The two filters will pay ONGC in rupees, the source added.

One source said ONGC Videsh would look to sell more cargo to Indian refiners if there was no interest from overseas buyers.

ONGC Videsh, HPCL and BPCL did not respond to Reuters emails asking for comment.

Western sanctions against Russia because of its invasion of Ukraine have affected Russian oil sales, allowing Indian and Chinese refineries to buy Russian Ural crude oil at high discounts.

India has called for an end to violence in Ukraine but has avoided outright condemnation of Russia, with which it has long-established political and security ties.

Russian President Vladimir Putin sent his troops to Ukraine over what he called a “special military operation” to destroy the army and “deny” Ukraine. Ukraine and the West say Putin waged a war of aggression without provocation.

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