Indian Oil Corporation (IOC) has informed various shipping companies about its plan to transport petroleum products, both clean and dirty types, on the East and West coasts over a period of one year beginning April 1.

According to indications available, an estimated 20 to 22 vessels of various types might be required for the proposed transportation, it is learnt.

The vessels will be acquired on time charter by the public sector oil giant.

"Discussions with IOC in this regard is at a very preliminary stage," observe shipping industry sources.

It might be noted that the present contract, which was for two years, is to expire on March 31.

Under the contract, a total of 19 vessels, offered by several shipping lines, were acquired on time charter.

Meanwhile, Shipping Corporation of India (SCI) has renewed its contract of affreightment (CoA) with Bharat Petroleum Corporation for transportation of crude, for imports and coastal movement, for a period of two years ending September 2008, with provision for an extension of one more year.

The agreement covers an estimated volume of 8.5 million tonnes annually, of which import will be about six million tonnes.

SCI, which also has a CoA with Hindustan Petroleum Corporation for transportation of crude, mostly by import, is believed to be in favour of an extension of the contract.

The present contract is for one year and due to expire in September. An estimated 10 million tonnes annually is to be transported under the contract, it is learnt.