It's time to upgrade your browser

You're using an outdated version of Internet Explorer.

  • Manage all your services
    with ease. Create your
    My Bharat Petroleum
    account now!
  • Register
Ship Chartering


BPCL always gives priority to procurement of domestic crude oil for running its refineries. However, as this is not sufficient to meet the Crude oil processing plan for the year for the BPCL Refineries, International trade procures crude oil from foreign sources. All shipping requirements, import/export or domestic coastal movement are handled by the Chartering desk.
We employ vessels of different sizes on Time Charter, Voyage Charter and also engage vessels under ‘Contract of Affreightment” (COA) to bring crude oil from Far East, Middle East and West African countries at most favorable terms. Chartering also ensures adequate numbers of vessels are engaged for time charter, for import of LPG and coastal movement of petroleum products.
BPCL supports Indian Ship owners as per the extant rules, however encourages competition by inviting foreign ship owners also in its vessel chartering tenders.
Companies interested in registering with BPCL for shipping, please visit Registration for further details.

For both import and export of BPCL Products, there are three main types of chartering used - spot charter, time charter and COA (Charter of Affreightment).

All import, export or domestic coastal movements use charter ships, overseen by the charter desk. BPCL sends over 15 MMPTA of crude oil and other products through domestic coastal movements, annually.

BPCL’s Ship Chartering process includes following steps –
Process for Ship Chartering:

1. Floating of Enquiry

 All enquiries will be sent out via email and fax to all registered ship owners and brokers.

 All the copies of enquiries floated, will be recorded by both, the Indian National Ship Owner’s Association (INSA) and DG (shipping) toensure that mandatory certificates (NOC) and licenses are granted.
2. Receipt of Offers

Offers shall be received via either of the following modes:

  1. Dedicated fax in a locked room for communication with registered parties.
  2. Email mailboxes wherein a separate mailbox is created for each of the parties enquiring along with requisite secure passwords.

The offers will be printed / collated after the email box is opened at the designated time for receipt of offers as specified in the enquiry or on the expiry of the extended time as provided in sub-clause (g) of this clause, as the case may be.

Offers received after closing time will not be considered.

Any offers from unregistered parties or incomplete submissions will not be considered.

Bids submitted by registered parties will be recorded and hard copies of the same will be collected along with all communication exchanged for record keeping.

3. Evaluation of Offers

 Several important factors will be considered when ranking the offers received, such as:

  1. Freight
  2. Demurrage rate
  3. Terms and conditions of the Charter Party (CP)

4. Counter Offers / Negotiations

The process of Counter Offers / Negotiation is as under:

No Indian Ship Owner has quoted:

Negotiation will be held with all the ‘technically acceptable bidders’ indicating their respective ranking. Whereas a 'Firm Counter' will be given to lowest (L1) bidder, the counter to all other bidders will be ‘Open’ (i.e. Open 1, Open 2 etc.). During negotiations, original rankings of the bidders can change depending upon their response to the counter(s).
Indian Ship Owner(s) has also quoted:

If offer(s) are received from Indian ship-owner(s) (Vessels belonging to Indian Ship Owner flying the Indian Flag), the Indian ship-owner(s) will have the ‘first right of refusal’ vis-a-vis the lowest offer received from Foreign ship owner, in compliance with government guidelines.
Indian Ship Owner is L1:

The counter shall be offered ‘firm’ to the technically acceptable L1 Indian ship-owner. Open counters would be offered to other technically acceptable Indian ship-owners and all technically acceptable foreign ship-owners. The respective rankings of all the bidders shall be disclosed.
If negotiations are successful with the foreign ship-owner, Indian ship-owner(s) will be asked to match the rate, failing which the ship will be fixed with the foreign ship-owner.
Indian ship-owner is not L1:

The counter will be given ‘firm’ to the technically acceptable L1 Indian ship-owner and ‘open’ to other technically acceptable Indian and foreign ship-owners. The relative ranking of all ship-owners shall be disclosed.
5. Fixtures on subjects

Once negotiations are concluded, the ship fixture will be confirmed on ‘subjects’ with a time schedule. While the ship fixture is on ‘subjects’, following activities will be undertaken:

  1. Charterer’s management approval
  2. Terminal/Supplier Acceptance
  3. Arrangement of the license from DG (Shipping) in case of foreign ships
  4. Obtaining record note of negotiations and Fixture Note from the broker / owner for record
  5. All parties will provide record notes of all telephonic conversations.

6. Charter Party Agreement

The following Charter Party Agreements apply:

  1. Voyage Charter Party (VC – for Foreign & Coastal) ASBATANKVOY with BPCL specific (Rider) Clauses.
  2. Terminal/Supplier Acceptance
  3. Time Charter Party (Foreign Voyages) SHELLTIME 4 / 3 (for LPG)
  4. Coastal and Time Charter Party. Charter Party agreements developed by BPCL and in use.

Procedure for chartering out time charter vessels

For chartering out time charter vessels by Bharat Petroleum, all oil majors, trading and shipping companies and empanelled brokers registered with BPCL will be intimated on position list, trading area, cargo grade, laycan etc.

Negotiations will be based on the offers received. Bharat Petroleum may carry out negotiation with the best offer.On successful completion of the negotiations, the vessel shall be given to the charterer for their approval.

Standard ASBATANKVOY Charter Party agreement shall be followed and finalised along with the rider clauses (after negotiations) with charterers.

For any queries or clarifications, kindly contact the following:

Mr. Sunil Advani: Mr. K.V. Suresh: