Petrobras signs contract to sell six million barrels of oil to Indian state-owned company

Petrobras signed, on Thursday (October 16), an oil sales contract with the Indian state-owned refiner Hindustan Petroleum Corporation – HPCL. The contract provides for the delivery of up to six million barrels and is valid for one year. The deal was signed in India during the official mission to New Delhi of the Vice President of the Republic and Minister of Development, Industry, Trade and Services (MDIC), Geraldo Alckmin. The Brazilian delegation includes executives from Petrobras and other Brazilian companies.
 
With the contract signed with HPCL, Petrobras will now supply oil to India's three main state-owned refiners. In February of this year, the company signed a sales agreement with Bharat Petroleum Corporation – BPCL, also for deliveries of up to six million barrels over a one-year period. Petrobras also maintains a successful commercial agreement with Indian Oil Corporation – IOC, the largest state-owned refiner in India. Through this agreement, more than 20 million barrels of oil have already been exported to the country over the past two years.
 
"India is, unquestionably, one of the main drivers of the global economy today and will be even more so in the near future. It is an extremely relevant market for international oil flows, given its robust economic and population growth, combined with its refining capacity of more than five million barrels per day and its local production covering just over 10% of its needs," explained Petrobras' Executive Director for Logistics, Commercialization and Markets, Claudio Schlosser.
 
For years, Petrobras' commercial relations with India were concentrated among private refiners, with Reliance Industries Limited – RIL still being an important current partner. Recently, however, the company has been focusing on state-owned refiners, which consume medium oils that better match the company's export profile.
 
"The increase in Petrobras' participation in supplying oil to India is the result of continuous efforts and market development carried out by our commercial offices in Singapore, Rotterdam and Houston, coordinated by the central office in Rio de Janeiro," said Schlosser.
 
Petrobras has a global presence and is constantly assessing all markets in search of the best placement for its exported oil volumes, negotiating barrels under both contractual and spot modalities.
 
In addition to India, the company has been increasing exports of different grades of crude oil to South Korea, Singapore, Thailand, and, most notably, to the European market. In the refined products market, Africa, the Americas, and Asia have gained importance. Beyond crude oil, Petrobras also markets internationally more than ten different petroleum-derived products.