look news india
Abu Dhabi Oil: Amidst the impact of new US sanctions, India’s state oil company Bharat Petroleum Corporation Limited (BPCL) has taken a major decision. The company has purchased 2 million barrels of ‘Upper Zakum’ grade crude oil from Abu Dhabi National Oil Company (ADNOC) in exchange for Russian oil. This deal will be completed in December.
Sanctions created a new strategy
Last week, the US imposed sanctions on two major Russian companies, Rosneft and Lukoil, for allegedly supporting the war in Ukraine. Due to this, Indian refiners have become alert. “Now we will buy oil only from those Russian companies which are not in the sanctions list,” a BPCL official said.
Upper Zakum vs Russian Ural – main differences
1) Upper Zakum
Medium-heavy crude oil obtained from offshore fields of Abu Dhabi. Low sulfur content, easily refined and low cost. Extremely popular in Asian markets like India and Japan.
2) Russian Ural
Cheap in price but high sulfur content. Purification is costly and time consuming.
A big change is coming in imports
BPCL imports 14.6 million barrels of crude oil every month. Till now, a large part of it came from Russia. Now the government may plan to buy 50% from restriction-free Russian suppliers and 50% from countries like Abu Dhabi and Saudi Arabia.
