{"id":80108,"date":"2026-06-09T12:45:36","date_gmt":"2026-06-09T12:45:36","guid":{"rendered":"https:\/\/www.europesays.com\/ch\/80108\/"},"modified":"2026-06-09T12:45:36","modified_gmt":"2026-06-09T12:45:36","slug":"indian-oil-partners-with-vitol-for-strategic-joint-venture-in-global-trading-etenergyworld","status":"publish","type":"post","link":"https:\/\/www.europesays.com\/ch\/80108\/","title":{"rendered":"Indian Oil Partners with Vitol for Strategic Joint Venture in Global Trading, ETEnergyworld"},"content":{"rendered":"

\"<p>TheThe joint venture will initially operate for 5 to 7 years, adding that an exit clause will be included for both partners.Indian Oil<\/a> plans to sign a deal early next year to form a joint venture<\/a> with global trader Vitol<\/a> as the state-run refiner seeks to expand its footprint in international crude and fuel trading<\/a>, according to a source with direct knowledge of the matter.<\/p>\n

The move marks a strategic shift for India’s largest refiner, which is seeking to copy global oil majors like Exxon Mobil and Shell by leveraging Vitol’s trading expertise and global network.<\/p>\n

The joint venture, to be based in Singapore, will initially operate for five to seven years, the source said, adding that an exit clause will be included for both partners.<\/p>\n

Indian Oil, along with its subsidiary Chennai Petroleum, controls about 31% of India’s 5.17 million barrels per day (bpd) of refining capacity. The company currently trades oil and fuel primarily for its own refineries but now wants to become a global player, the source said. The source did not want to be identified by name due to the sensitivity of the matter.<\/p>\n

The partnership with Vitol will help Indian Oil cut crude-procurement costs from spot markets and improve margins through access to new buyers, the source added.<\/p>\n

The joint venture will also help the global fuel trader strengthen its position in India as it seeks to position itself as a global refining hub. India is the world’s third biggest oil consumer and importer. <\/p>\n

India will raise its crude-refining capacity to about 6.2 million bpd by 2030 with long-term plans to scale further to 8 million to 9 million bpd, oil minister Hardeep Singh Puri said on Tuesday.<\/p>\n

He said the refining capacity expansion will consolidate India’s position among the top three refining hubs globally, as around 20% of the existing global refining capacity – some 100 refineries – faces potential closure by 2035.<\/p>\n

Indian Oil held talks with several firms, including BP, Trafigura, and TotalEnergies, before teaming with Vitol, the source said.<\/p>\n

The refiner imports most of the crude processed at its 10 facilities, which have a combined capacity of 1.62 million bpd. The planned venture is expected to help Indian Oil export refined fuels and tap into Vitol’s distribution channels.\n <\/p>\n

Published On Oct 29, 2025 at 04:21 PM IST<\/p>\n

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