Indian Oil Corporation (IOC), the country’s largest fuel retailer is in talks with Russian state-owned oil giant Rosneft for sourcing crude oil under a term contract, Chairman Sanjiv Singh told reporters at a press conference here.
Singh, on the occasion of the company’s third quarter financial results, shared information on a host of issues including price premium for BS VI fuel, impact of IMO 2020, and the status of the mega west coast refinery. Edited Excerpts..
Q. Is the company in talks with Rosneft for sourcing crude oil?
Ans. We have been exploring this possibility seriously for quite some time and we are close to finalising our deal with Russia, there are certain commercial terms which are being finalized, it should happen. We cannot disclose the quantity and other details as we are still in talks with Rosneft.
Q. Could you provide an update on the mega west coast refinery? Was the MoU signed with Saudi Aramco for the west coast refinery binding for Aramco?
Originally the site was indicated to be in ratnagiri district, subsequently Raigad was being looked at. An updated configuration study has been carried out keeping in mind the new location. Presently the cost estimates of shortlisted configurations are being worked out. The issue of land is yet to be firmed up, after the new state government was formed talks are again underway on land location.
It was not to that extent binding, as they have committed to the investment approval stage initially, because no such final binding commitment can be made by any stakeholder until we have the finality with respect to the overall cost, configuration and land.
Q. Do you plan to sell BS VI fuel at a premium? Will the hike be staggered?
Ans. We are under the process of working out the implications on pricing. There will be a quality premium as far as BS VI is concerned. The premium will be applicable only when the BS VI fuel starts being dispensed at retail outlets.
I do not think that the premium will be very large to require staggering. As there is no exact product like BS VI being traded internationally, prices will have to be calculated indirectly based on the closest available international product.