IndianOil to use derivatives

Rankings 2004

IndianOil has become the first public sector oil company in India to start risk management operations – the company plans to begin paper trading of crude oil from the end of January, having signed International Swaps Dealers Association agreements with BP, BNP-Paribas, Citibank and Vitol – its ultimate target is 20 Isda counterparties.

The company plans to use derivative transactions to reduce its exposure to volatile international oil prices, in line with guidelines stipulated by the Reserve