Bangladesh looking for Russian oil at discounted rates via India, in talks with Rosneft

Bangladesh is trying to buy cheap oil from Russia to reduce its crude bill and possibly routing the shipment via India.
Representational Image. (File | Reuters)
Representational Image. (File | Reuters)

NEW DELHI: Bangladesh is trying to buy cheap oil from Russia to reduce its crude bill and possibly routing the shipment via India.

“Bangladesh Petroleum Corporation is in talks with Rosneft to import crude at discounted rates of $59 a barrel as against the global market price that is creeping towards $100. Since Bangladesh doesn’t have the technology to refine Russian crude, it may turn to India for help,’’ said sources.

At present, Bangladesh has a long-term contract with India to import refined crude oil from the Numaligarh refinery in Assam. Besides, it has given the green light to Indian Oil Corporation Limited for exporting refined petroleum products.

An under-construction cross-border 131.57 km friendship oil pipeline is expected to be ready by the end of this year, which will make fuel supplies seamless.

Around 125 km of the pipeline has already been laid. It will connect Siliguri, West Bengal and Parbatipur, Dinajpur.

The cost of the pipeline is around Rs 500 crore, of which nearly Rs 300 crore is being provided by India. Of the total length of the pipeline, 126.50 km is inside Bangladesh.

“This pipeline will ensure uninterrupted fuel supply to 16 districts in Bangladesh of Rangpur and Rajshahi and would be cost effective,” said sources.

To enhance its energy security, Bangladesh, India and Russia signed a tripartite nuclear deal four years ago to construct a N-power plant in Rooppur in Bangladesh.

“Russia is building the N-power plant and Indian companies are involved in the construction, installation and supply of non-critical equipment,’’ said sources.

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