- India’s Hindustan Petroleum Corp (HPCL) will be cautious in buying Nigerian oil, its head of refineries said, as the company is still scouting for a vessel to lift a cargo for early October loading after the African nation sought a “letter of comfort” from shippers.
“We are finding it difficult to book a vessel to lift Nigerian crude … We will be cautious in future while deciding about crude of Nigerian origin,” B.K. Namdeo told Reuters.
- He said his firm was unsure whether it would be able to lift a very large crude carrier of Qua Iboe crude on time.
“Nobody is coming forward to offer the vessel and whoever is willing to go to Nigeria is asking exorbitant rates.”
- HPCL bought the 2 million barrels of Qua Iboe from Totsa, a trading arm of France’s Total, for Oct. 7-8 lifting on a free on board (FOB) basis, meaning the buyer pays the cost of marine freight, insurance, unloading and other costs to destination.
- The Indian firm had chartered the Ridgebury Progress to lift the cargo, but the vessel owner refused to sign the “letter of comfort” sought by the Nigerian authorities.
- Nigeria this month lifted a ban on certain oil tankers sailing into its territorial waters that was implemented in July. But as a condition for the ban removal, it created the letter of comfort requirement in an effort to target oil theft