Iraq Offers Longer Credit to India

By John Lee.

The head of refineries at Hindustan Petroleum (HPCL) has told Reuters that Iraq is willing to double the credit period on crude sales to 60 days if Indian refiners buy more in 2014.

B.K. Namdeo added:

"Iraq is very positive. They are willing to raise credit period to 60 days and waive off opening of letters of credit (LCs) provided volumes are increased."

Iraq has stepped up sales to India after sanctions made trade with Iran difficult.

He said HPCL has not yet worked out crude import numbers for 2014. The company has a deal to buy 60,000 bpd of Basra oil from Iraq's State Oil Marketing Organisation (SOMO), and another to buy another 40,000 bpd from Total.

India's biggest refiner, Indian Oil Corporation, could also raise imports from Iraq to 284,000 bpd in 2014 from 270,000 bpd now as it aims to commission its 300,000 bpd Paradip refinery on the east coast next year.

(Source: Reuters)

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