NEW DELHI, Feb. 12 (UPI) -- State-run Indian Oil Corp. has said it will ink a deal with Cairn India Ltd. to buy its Rajasthan crude oil provided it is economically viable.
"Any commitment from IOC on the quantity of crude to be purchased from Cairn would depend on the economic viability of the deal," IOC officials told their counterparts at Cairn during a recent meeting called to resolve the dispute.
Cairn has faced difficulties in persuading IOC, the potential buyer, to sign an agreement to buy crude. IOC says it is not convinced such a pact would be economically viable, The Business Line newspaper reported Monday.
IOC said it is analyzing the Rajasthan crude and condensate.
"Cairn at a meeting held recently pressed for a commitment from us on the quantity of produce each refinery of IOC would require," said an IOC spokesman.
He said IOC told Cairn the quantity would depend on the price at which crude is offered. He said IOC would also like to receive discounts to make the processing of the waxy crude economically viable.
"Processing the Rajasthan crude -- that has a very high pour point and viscosity with 70-75 percent heavy ends -- can only be economically viable if heavy discounts were extended," the spokesman said.
The spokesman said technical study of the Cairn crude showed that when stored, the wax was separated from the crude, which is a cause for concern.
