Prize Production

  • 27/05/2008

  • Economic Times (New Delhi)

RIL To Kickstart Spot Crude Market With Indicative Benchmarked Price ENERGY major Reliance Industries (RIL), which is set to kick off the first spot crude oil market in the country, will be inviting price quotes from oil refining companies shortly. This would also set the first benchmark for market-driven prices in the crude oil sector. RIL is set to be the first oil and gas private major to develop an oil and gas market in the country. RIL has had initial round of talks with refinery companies such as Hindustan Petroleum Corp for its Vizag refinery, Mangalore Refinery & Petrochemicals and Chennai Petroleum Corp, to name a few. RIL would float the tender in a few days when the company would set an indicative benchmarked price based on the quality of the crude. Initial tests have shown the crude to be sweet and light in nature, which is a premium crude. Refinery companies bidding for the crude oil will have to quote a price that is a discount or a premium to the indicative price. Although a final decision is yet to be taken, RIL