BPCL to Receive First Iraqi Oil Cargo

Announcement

BPCL announced that it will receive its first Iraqi oil shipment of the current fiscal year within days, as stated by finance head Vetsa Ramakrishna Gupta at a news conference following the annual shareholders’ meeting on Thursday.

Shipment Details

The company has secured a vessel willing to transport the crude to Fujairah for a ship‑to‑ship transfer; the vessel has already crossed the Strait of Hormuz and the cargo is expected to arrive at BPCL refineries within days. The name of the vessel was not disclosed.

Procurement Requirements

BPCL requires 2 million barrels of Iraqi crude each month. The company is prepared to lift cargoes from inside the Strait of Hormuz provided insurance costs remain reasonable and ship owners accept the risk, even if the cargo incurs 30‑45 days of demurrage, as long as the transaction remains commercially viable.

Geopolitical Context

The Strait of Hormuz, through which about one‑fifth of global energy supplies transit, has faced closures due to the Iran‑Israel war and attacks on vessels, creating supply challenges that BPCL is navigating.

Outlook

BPCL remains open to purchasing additional oil from Gulf suppliers on a free‑on‑board basis if suitable vessels become available.