NEW DELHI, Dec 30: Reliance Industries Ltd is aiming for a premium of at least USD 3.5 per barrel above an international benchmark for the crude oil produced from the eastern offshore KG-D6 block, as stated in the tender released by the company on Monday.
Reliance, in partnership with BP of the UK, has invited bids from domestic refiners for the sale of 17,600 barrels (2,800 kilolitres) of crude oil each month from April 2025 to February 2026.
The crude oil is priced based on the daily average of Nigerian Bonny Light grade crude oil, with an additional quality premium of USD 1.5 per barrel. Bidders are required to quote a premium above this price, as detailed in the tender document.
Bonny Light’s recent trading price was USD 73.5 per barrel. On top of that, an extra USD 1.5 per barrel is included as a composite premium “reflecting quality differential”. Interested buyers must provide a “biddable premium, up to one decimal place and exceeding USD 2 per barrel”, according to the tender.
The sale period could be extended by an additional three months to a maximum of one year under the same terms and conditions, including the pricing formula.
The crude oil will be processed into fuels such as petrol and diesel at refineries, with delivery set to occur at Gadimoga in East Godavari district, Andhra Pradesh.
Reliance holds a 66.67 percent stake in the primarily gas-rich KG-DWN-98/3 block (KG-D6) located in the Bay of Bengal, while BP Exploration (Alpha) Ltd owns the remaining 33.33 percent.
Together, they produce approximately 30 million standard cubic metres of gas per day from the block, with a small amount of crude oil also being extracted, for which they are currently soliciting bids.
Bids are to be submitted by January 24, 2025, as noted in the document.
The document further clarifies that “the crude oil sold and delivered shall solely be consumed/processed/refined at the buyer’s owned and operated facility/(ies)/refinery/(ies) located within India.”
All applicable taxes and duties, including excise duty, VAT, and GST, will be the responsibility of the buyer. (PTI)
