Hindustan Petroleum drops state chartering arm

India’s state-owned Hindustan Petroleum Corp. (HPCL) is planning a shake-up of its shipping operation, in a further sign of greater liberalization in the sector. HPCL will charter ships independently from October, when its contract of affreightment (COA) with Shipping Corp. of India expires on September 30. The move follows the dismantling of Transchart, the centralized chartering agency that operates under the shipping ministry. Increasingly, more oil and gas companies in India are planning their own charters for the country’s crude imports. Indian Oil Corp. (IOC) recently also announced its plans for independent ship chartering. According to HPCL officials, independent chartering will help the company charter vessels at competitive prices and provide flexibility in operations, proper feedback on market rates and demurrage charges and freedom for incorporating “special clauses” to suit the company’s requirements. (August 31, 2007)