Reliance trying to sell some cargoes of Middle Eastern oil in rare offer

By Rakesh Sharma and Serene Cheong

 

Reliance Industries Ltd. is seeking to sell some cargoes of Middle Eastern oil to domestic and international buyers, in an unusual move for the Indian refiner that’s normally a major buyer. 

 

The company, controlled by billionaire Mukesh Ambani, has been trying to sell grades including Murban and Upper Zakum on the spot market, according to people working at companies that received those offers. They asked not to be named as they aren’t authorized to speak publicly. It’s unclear how much crude Reliance is looking to offload. 

 

The move by India’s largest privately owned refiner is a surprise as Reliance is typically a major importer of oil from the Middle East and Russia. The Mumbai-based company has already sold a cargo of Iraqi Basrah Medium crude to a Greek buyer. 

 

A Reliance Industries spokesperson didn’t reply to an email seeking comment.

 

Refiners in India, the world’s third-largest importer of crude, are busy trying to diversify their supply sources after Western sanctions made buying discounted Russian oil more difficult and risky. Reliance had been Indian’s top importer of Russian crude this year, but snapped up millions of barrels from the Middle East last month after White House penalties that were aimed at depriving the Kremlin of funds for its war in Ukraine. 

 

Reliance said last month that it would abide by the US sanctions, and would be adapting its operations to meet the compliance requirements. The refiner previously had a term supply deal for around 500,000 barrels a day of oil from Russian producer Rosneft PJSC.