HPCL to triple crude oil import from Iran

State-owned Hindustan Petroleum Corporation (HPCL) will triple crude oil import from Iran while reducing supplies from Iraq next fiscal.

HPCL plans to import 3 million tonnes of Iranian crude from National Iranian Oil Co (NIOC) on term contract in 2009-10 as against the current year import of one million tonnes, sources said.

Current imports from Iran are on a 30-day credit period, which too would be raised to 90 days in 2009-10.

Sources said imports from Iraq's State Oil Marketing Organisation (SOMO) will be reduced to 1.25 million tonnes from 3.25 million tonnes in the current year.

HPCL's total crude oil requirement for 2009-10 has been estimated at 15.50 million tonnes. Considering the availability of domestic crude oil at 4.58 million tonnes (based on the 2008-09 allocation), the imported crude oil requirement is estimated to be 10.92 million tonnes.

Of this, 9.38 million tonnes would be imported on term contract from national oil companies while the remaining 1.54 million tonnes from the spot market.