Indian Oil Plans to Buy Own Crude and LPG Carriers
Indian Oil Corporation (IOC), India’s largest oil refining and marketing company, plans to buy its own crude oil tankers and LPG carriers instead of relying only on chartered ships, according to a Press Trust of India report carried by India Shipping News on 11 November from New Delhi. The move follows the West Asia crisis and the disruption of shipping through the Strait of Hormuz, which have exposed how much India’s energy imports depend on foreign-controlled tonnage.
IOC’s board has reportedly approved the purchase of a few vessels, and tenders were issued several months ago. The company is also exploring building ships at Indian yards. At present, IOC uses three crude carriers and nine LPG ships on time charter.
From the CrewMirror Blog
The report says time-chartered crude tankers cost IOC about US$2 to US$2.50 per barrel, while spot freight rose to about US$8 to US$10 per barrel during the recent volatility. Spot rates for LPG have climbed from around US$40 per tonne in normal times to about US$160 to US$180 per tonne.
Owning ships would give IOC more control over supply and costs. It also fits the Government of India’s wider push to grow the Indian-owned and Indian-flagged fleet and to develop domestic shipbuilding under the Maritime India Vision 2030 and Amrit Kaal Vision 2047.
CrewMirror Takeaway
More Indian-owned tankers and gas carriers could mean more berths for Indian officers and ratings. Seafarers aiming for these jobs would benefit from keeping their tanker and gas endorsements (oil, chemical and liquefied gas) up to date.
