Bharat Petroleum Corp Ltd (BPCL) issued a spot tender Monday to purchase several Malaysian light sweet crude grades, raising expectations that more Indian end-users could switch their focus to Southeast Asian supplies amid growing uncertainty over the exports of Nigerian crude grades among others, Pltts reports.
BPCL’s latest move was seen as necessary, as the procurement of any Nigerian crude grades would be a big risk amid ongoing production hiccups caused by militant attacks in the Niger Delta, a company source said Tuesday. “BPCL, like many other Indian state-run companies, prefer to take Nigerian light sweet crudes like Qua Iboe and Bonny Light. Those are the number one choices,” the source said, adding that “when production [of light sweet Nigerian grades is]in doubt, the next best option would be Malaysian [grades].”
Late last week, ExxonMobil said Nigerian crude Qua Iboe has been placed under force majeure and exports were halted, while Italian company Eni confirmed earlier this month that 4,000 b/d of oil equivalent of equity production had been shut-in following an attack claimed by Nigerian militants in the Niger Delta. Nigerian militant group the Niger Delta Avengers said Friday that it would not permit foreign oil companies operating in the Niger Delta region to carry out repairs on bombed oil pipelines, threatening more devastating attacks on any repaired facility.
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