IOC will only accept Russian crude on dap basis

Indian state-owned refiner IOC's latest crude tenders stipulate that it will only accept Russian and Black Sea-loading grades on a delivered at place (dap) basis.

In a move to avoid rising insurance and shipping costs linked to Russia's invasion of Ukraine, IOC included the specification in three tenders for sweet and sour crude supplies issued yesterday. The dap stipulation applies to Russian Urals and ESPO Blend, as well as Caspian CPC Blend. In previous tenders, IOC has always accepted offers for the Russian and Kazakh grades on either a fob or dap basis.

The tenders, which are due to expire on 4 March, are seeking supplies for delivery to the ports of Chennai, Mundra or Paradip between late April and early June.

Seaborne Urals exports are shipped from the Baltic terminals of Primorsk and Ust Luga, as well as from the Black Sea port of Novorossiysk. CPC Blend loads from the CPC terminal near Novorossiysk, while ESPO Blend loads from the Kozmino terminal in Russia's far east.

By Nicola De Sanctis