From The Economic Times · PTI · · 1m 20s
IOC to buy crude, LPG ships as West Asia crisis exposes shipping risks
Indian Oil Corporation plans to acquire crude oil and LPG carriers amid West Asia shipping disruptions.
In brief
Indian Oil Corporation plans to acquire crude oil and LPG carriers amid West Asia shipping disruptions. Indian Oil Corporation will buy crude oil and LPG ships to secure energy supply chains as West Asia tensions disrupt shipping routes. Originally reported by The Economic Times.
IOC plans vessel acquisitions
Indian Oil Corporation aims to enhance control over its energy supply chain by acquiring crude oil and LPG carriers.
West Asia tensions disrupt shipping
Geopolitical tensions in West Asia disrupt commercial movement near the Strait of Hormuz, pushing up freight rates and war-risk insurance costs.
IOC's current shipping strategy
The company currently has three crude oil vessels and nine LPG vessels on time charter, providing significant cost savings during the crisis.
Freight rate increases
Time-chartered crude carriers cost USD 2-2.50 per barrel versus spot-market rates of USD 8-10 per barrel, while LPG freight rates rose to USD 160-180 per tonne.
IOC's crude sourcing mix
IOC sourced 55 per cent of crude from Russia, 24 per cent from Middle East, 10 per cent from Africa, 7 per cent from Brazil, 2-5 per cent from US, and 3-4 per cent from…
Inventory and profitability
The company increased crude inventories to 39 days, held 20 days of LPG inventory, and reported a net profit of Rs 21,630 crore in the September quarter.
What matters most
Indian Oil Corporation will buy crude oil and LPG ships to secure energy supply chains as West Asia tensions disrupt shipping routes.
