India has begun selling oil from its Strategic Petroleum Reserve (SPR) to state-run refiners as it implements a new policy to commercialise its federal storage by leasing out space, three sources familiar with the matter said. Reuters reported last month that India had changed its policy to allow the Indian Strategic Petroleum Reserves Ltd (ISPRL), which manages the federal oil inventories, to lease 30% of its overall 37 million barrels capacity to Indian and foreign companies. Last year, the ISPRL filled the SPRs with cheap oil and it needs to sell some of that to make way for leasing.
India's Hindustan Petroleum Corp will operate its Mumbai refinery at an expanded capacity of 190,000 barrels per day (bpd) by mid-October, its chairman M. K. Surana said on Wednesday, a slight delay from the previous estimate. HPCL shut the 150,000 bpd Mumbai refinery from April 1 for maintenance and capacity expansion. State refiners are investing about $27 billion as India aims to raise refining capacity by a fifth to 298 million tonnes a year by 2025, junior oil minister Rameswar Teli told lawmakers earlier in the day.
State run Hindustan Petroleum has shut a 70,000 barrel per day (bpd) crude unit at its Vizag refinery in Southern India after a fire broke out at about 15:00 pm local time (0930 GMT) on Tuesday, the company said in a statement.