Marketing Strategy

In November 2008, the Company signed an agreement with BP for the supply of 60% of the crude requirements for refining capacity of 100,000 BPSD at the prevailing market rates. BP has expressed its willingness to increase the quantity to meet the requirements of 200,000 BPSD. The agreement is valid for 10 years and provides flexibility to enter into derivative contracts (swaps) to hedge price risk and volatility.

The Company has also signed a product off-take agreement with BP for offtake of diesel (gasoil) and Gasoline produced at the prevailing market rates for refining capacity of 100,000 BPSD. Gasoil and Gasoline will account for around 70% of the product slate of the refinery.

Other products like LPG, ATF, kerosene, sulphur and petcoke would be sold in the open market.

The Company has signed a MoU with Bharat Petroleum Corporation Limited (BPCL) for the offtake of products other than those required as per agreement with BP for the total capacity of 200,000 BPSD.