Reliance enters high-value venture, trades oil from KG block for premium prices

Reliance Industries Ltd, a leading energy company in India, has resumed crude oil production from its east coast MA-1 field, which was temporarily shut down in December. The company is seeking bids from domestic refiners for the sale of 17,600 barrels of crude oil per month from April 2025 to February 2026 from its KG-D6 block. The crude oil is priced based on the daily average price of Nigerian Bonny Light grade crude oil plus a quality premium of $1.5 per barrel. Bidders must quote a premium over this price, which cannot be less than $2 per barrel. The sale period can be extended by up to one year. The crude oil will be delivered at Gadimoga in East Godavari district of Andhra Pradesh, and the buyer must consume/process/refine it in their own facility located within India. All taxes and duties, including excise duty, VAT, and GST, will be paid by the buyer. The bid deadline is January 24, 2025.