Page 4 - AsianOil Week 14 2021
P. 4
AsianOil SOUTH ASIA AsianOil
India, Saudi oil price spat deepens
POLICY INDIA’S spat with Saudi Arabia over oil prices
is showing little sign of slowing down, despite
the kingdom’s recent support for an easing of
OPEC+ production curbs.
India’s state-run refiners will buy 36% less oil
from the Middle Eastern producer than is typ-
ical, Reuters quoted three unnamed sources as
saying on April 6.
The newswire’s sources said Indian Oil Corp.
(IOC), Bharat Petroleum Corporation Ltd
(BPCL), Hindustan Petroleum Corporation
Ltd (HPCL) and Mangalore Refinery and Pet-
rochemicals Ltd (MRPL) had lowered their May that the organisation has failed to deliver much-
order of Saudi crude from a planned 10.8mn needed oil price stability at a time when the
barrels to 9.5mn barrels. These levels are far short global economy is trying to find its feet. He has
of the 14.8mn barrels that the four typically buy repeatedly warned that India will diversify its
from Saudi each month. imports as well as speed up its adoption of alter-
The move comes despite Riyadh’s support native energy supplies if production cuts are not
last week for OPEC+ to ease production curbs, eased.
which India blames for driving up international Indeed, the official said on March 26 that
oil prices and thereby hurting its economic India’s energy purchases would be driven
recovery. by commercial interests rather not bilateral
OPEC and its partners opted at their April 1 relations.
meeting to ease output cuts by 1.1mn barrels per “India will keep its interest in mind in decid-
day over the course of the next three months. The ing on its strategic and economic decisions,” he
group will up production by 350,000 bpd in May, told an industry event. “We are a consuming
then by another 350,000 bpd in June and finally nation and we will have to import energy for
by 400,000 bpd in July. Saudi, meanwhile, has a long time. So whosoever gives up cheap, and
pledged to phase out its own 1mn bpd cut by July. easy, [oil] we will buy from them.”
The Indian government, however, remains Interestingly, while Pradhan and Saudi Oil
unimpressed with the effort. Indian Ministry of Minister Prince Abdulaziz bin Salman engaged
Foreign Affairs spokesman Arindam Bagchi said in talks on April 4, which one Reuters source
on April 1 that the relaxed production curbs still characterised as “positive”, Saudi Aramco opted
fell short of his government’s expectations. He the next day to raise the official selling price
said: “We’ve always believed that crude supply (OSP) for crude shipments to Asia while cut-
should be market determined rather than arti- ting those for European and North American
ficially managed.” markets.
Indian Minister of Petroleum and Natural “We were surprised when they announced
Gas Dharmendra Pradhan has been an out- cuts for other markets while raising OSPs for
spoken critic of OPEC+ this year, complaining Asia,” one of Reuters’ Indian sources said.
SOUTHEAST ASIA
Shell awards Malaysian
drilling contract to Maersk
PROJECTS & ROYAL Dutch Shell has awarded a contract to five additional one-well options for work off-
COMPANIES Maersk Drilling to drill four development wells at shore Malaysia, the Philippines and Brunei
the Gumusut-Kakap project offshore Malaysia. Darussalam.
Maersk said on April 7 that the contract was The ultra-deepwater Maersk Viking, a sev-
expected to commence in December 2021 and enth-generation drillship that was delivered in
last an estimated 150 days. While the value of 2013, will handle drilling operations. It is cur-
the four contracted wells is $34mn, including rently operating offshore neighbouring Brunei
a mobilisation fee, the agreement also includes Darussalam.
P4 www. NEWSBASE .com Week 14 08•April•2021
