Rajasthan: Indian state set to supply crude to Reliance Industries.
Reliance buys Cairn India's crude
Reliance Industries is set to buy crude from Cairn India’s fields in northwestern Rajasthan state.
The duo has signed an initial pact for crude supplies to Reliance’s Jamnagar refinery in the western state of Gujarat.
The deal covers the sale of seven parcels of 200,000 barrels each from the third week of November, totaling 1.4 million barrels this year, the Times of India reported citing sources.
No details were provided but Cairn implied the price represents an average 10% to 15% discount to Brent on the basis of prices prevailing for the six months to September, according to a Dow Jones report.
Reliance owns two refineries in western India capable of processing heavy crude at 1.24 million barrels per day. The India’s largest company by market capitalisation is set to be the first private refiner to process domestic crude after sealing the deal with Cairn.