India sells oil from strategic sites

India, the world’s third-biggest oil importer and consumer, has begun selling oil from its Strategic Petroleum Reserve (SPR) to state-run refiners. The move is a part of the new policy to commercialize its federal storage – Indian Strategic Petroleum Reserves Ltd (ISPRL) – by leasing out 30% of its overall 37 million barrels capacity to Indian and foreign companies.
It seeks to boost private participation in two new facilities that are planned. The government will also allow the ISPRL to trade oil equivalent to 20% of the overall SPR capacity in the India markets. Sources familiar with the development state that ISPRL is gradually releasing 8 million barrels from the SPRs to create space to also lease to state-run Mangalore Refinery and Petrochemicals Ltd and Hindustan Petroleum Corp.