Author: Avijit Bajpai

Indian Oil Corporation has sought discounts from energy major Cairn for buying its crude output from Rajasthan. The demands are based on the fact the said crude is 'waxy' and heavy than normal crude that IOC's pipeline carries.

The state run oil refinery is seeking a discount in the range of $15 to $18 per barrel, as the company is required to pour additional costs in transporting the crude, as it usually gets transformed into solid at normal temperatures, Mr. Bankapur, IOC’s Refineries Director stated.

IOC could take substantial amount of crude from Cairn India’s Barmer oilfield, for its Panipat and Gujarat refineries. Barmer Oilfield may prove to be major asset for Cairn India, as the company is looking forward to produce a whopping 8.25 million tonnes of crude from it.

As of now, government has nominated MRPL to lift the crude from Barmer oilfield; however, as the agency has already pointed out its upper limit of 1.2 mt, the government is likely nominate other potential refiners of the country for lifting off the rest of the crude from the oilfield.