IOC Keeps Gulf Crude Sourcing Amid Mideast Tensions

Indian Oil Corporation (IOC) has announced that it will continue sourcing crude oil from the Persian Gulf despite regional tensions in West Asia. The company's chairman, A S Sahney, explained that moving away from these suppliers is not practical due to the specific technical design of IOC refineries and lower shipping costs associated with these routes.

IOC has confirmed that it does not expect immediate interruptions to its crude supply, with current inventory levels secure through September. The company has developed contingency plans in case of potential risks from ongoing Red Sea transit issues, including rerouting shipments around the Cape of Good Hope if necessary.

In light of global energy market uncertainty, IOC has decided to pause signing new long-term oil and gas supply contracts. Instead, the company is focusing on strengthening its own logistics infrastructure by investing in liquefied natural gas (LNG) imports and acquiring stakes in two very large gas carriers.