JAMNAGAR REFINERIES IN A MARKETING FIX
Article Abstract:
Private oil refineries, Essar Oil and Reliance Petroleum, are disagreeing with the public sector Indian Oil Corporation (IOC) over a take-or-pay clause in the marketing contact. IOC wants the take-or-pay deal with penalty clauses only for certain products while the private refiners want total assurance on product evacuation. IOC does not mind giving a guarantee for 100 percent offtake of liquefied petroleum gas but not for petrol, aviation turbine fuel and kerosene. IOC has started expansion programmes at its own refineries in Mathura, Koyali and Panipat and feels that there may not be a market for all the products. (khr)
Comment:
Reliance Petroleum disagrees together w/ Essar Oil, with this co over take-or-pay clause in the marketing contact
Publication Name: Economic Times
Subject: Business, international
ISSN: 0013-0389
Year: 1998
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IOC TO BUY 50% OF ESSAR'S, RELIANCE'S JAMNAGAR OIL
Article Abstract:
Indian Oil Corporation (IOC) has signed agreements with Reliance Petroleum and Essar Oil to buy 50 percent of the production from their Jamnagar Refineries for the next 10 years. The price will be fixed every month and will be fixed on the formula based on published international rates like Platts and Afra. Included in the agreement is a penalty clause of Rs700 per tonne which either party will have to pay on failure to supply the product or pick them up. IOC has agreed to an offtake of about 8.5 million tonnes per annum of LPG, petrol and middle distillates comprising diesel, kerosene, and aviation turbine fuel. (uh)
Publication Name: Economic Times
Subject: Business, international
ISSN: 0013-0389
Year: 1998
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GOVT MAY RELAX FOREIGN EQUITY CAP ON REFINERIES
Article Abstract:
To increase foreign investment in refinery projects, the Government of India intends to increase foreign equity cap in such projects from 26 percent to 50 percent. The Indian Oil Corporation (IOC) and the Bharat Petroleum Corporation Ltd (BPCL) have welcomed the Government's move as these firms plan to set up refineries through the joint venture route. IOC plans to set up a refinery at Paradip in alliance with Kuwait. BPCL proposes to establish its refinery tying up with Shell. BPCL's 6 million tonnes refinery will be located at Bina. (gs)
Comment:
India: Government intends to increase foreign equity cap in refinery projects from 26% to 50%
Publication Name: Economic Times
Subject: Business, international
ISSN: 0013-0389
Year: 1998
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