IOC has continued to buy Russian crude at what it described as optimal prices and has also been processing Venezuelan crude (Photo: Reuters)
State-owned Indian Oil Corporation plans to acquire crude oil and liquefied petroleum gas carriers of its own as disruptions to shipping around the Strait of Hormuz and soaring freight costs prompt India's largest oil refiner to strengthen control over its energy supply chain.
The company's board has already approved the purchase of a few vessels, and tenders were issued several months ago, Director of Finance Anuj Jain said during its second-quarter earnings call.
"The country needs oil sector companies to focus more on the shipping area now," Jain said, adding that IOC was also exploring the possibility of building ships in India under the government's Make in India initiative.
The move marks a potential shift in the company's shipping strategy, which has traditionally relied on a mix of time-charter and voyage-chartered vessels. IOC is now examining three approaches: optimising existing charter arrangements, owning ships and supporting domestic shipbuilding.