Iran close to deal with Indian refiner

Iran is set to further boost its rising crude oil exports to Asia, as Opec's second-biggest producer is close to concluding its first term contract with India's Bharat Petroleum Corporation Limited (BPCL).

National Iranian Oil Company (NIOC) is discussing a four-month deal with BPCL, as the Indian state firm looks to replace imports of costly Yemeni Masila crude, a BPCL official said. The proposed deal comes at a time when Iran is increasing its crude exports to Asia this year, as threats of sanctions against its nuclear ambitions have faded off for the time being.

BPCL is also hoping to marginally raise its imports of Saudi Arab Medium crude. The official said BPCL received assurance from Saudi Arabia for additional supplies of 250,000 tonnes on top of the 3.5 m tonnes supplied under a term deal this year.

If the two deals are concluded, BPCL's term crude imports for 2007 will rise to 9.6m tonnes, up from around 8.25m tonnes last year, reducing its reliance on the spot market.

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