Reliance to Raise Crude Oil Imports From Saudi Arabia

 

June 17 (Bloomberg) -- Reliance Industries Ltd India's biggest company, is increasing crude oil imports from Saudi Arabia as it seeks to secure supplies because of rising demand for fuels in India and the rest of Asia.

Reliance, based in Mumbai, is boosting purchases by at least 90,000 barrels a day, accounting for 30 percent of Saudi Arabia's output increase of 300,000 barrels a day this month, P.M.S. Prasad president of the company's oil and gas business, said in a telephone interview.

The refiner, building a second oil refinery that would make it the world's largest by this year, stepped up imports after Saudi Arabia's Oil Minister Ali al-Naimi last month the kingdom is raising output to meet demand from customers.

Demand for fuels in the Middle East and Asia is forecast to rise 25 percent to 39 million barrels a day in 2015 from 2008, consultant FACTS Global Energy said today in a report.
 

``We have been assured of the additional barrels,'' Prasad said yesterday.

Reliance operates a 660,000 barrel-a-day refinery at Jamnagar in Gujarat, and would start operations at a 580,000 barrel-a-day plant under unit Reliance Petroleum Ltd. later
this year.

Refiners in Japan and South Korea are poised to increase crude oil imports in the coming months after annual plant maintenance peaked this month.

``There's an abundant supply of heavy crude but the Saudis are more savvy than others in marketing their crude,'' said Harry Tchilinguirian, senior oil market analyst at BNP Paribas SA. ``There's also a seasonal element to this as refiners return from maintenance.''

Heavy Crudes

Saudi Arabia, the world's biggest oil producer, and the most influential member of the Organization of Petroleum Exporting Countries, pumps a variety of light and heavy crudes. OPEC, which supplies about 40 percent of the world's oil, hasn't been able to rein in prices, which rose to a record $139.89 a barrel in New York yesterday.

Reliance Chairman Mukesh Ambani earns more compared with overseas rivals by processing cheaper, dirtier crude with high- sulfur content. His plant is located two days away by ship from the Middle East.

 

Reliance earned $15.50 from processing a barrel of oil into fuels in the quarter ended March 31, compared with $7 for a plant in Singapore, the company said April 21.

 

China, the world's biggest energy user after the U.S., has increased crude oil imports from Saudi Arabia 17 percent this year to almost 10 million tons as new refineries start operations, according to customs data.