India's Mangalore Refinery and Petrochemicals Limited (MRPL) will raise term crude imports from Iran by 7.6 per cent to 142,000 barrels per day (bpd) for fiscal year begining April, a source close to the negotiations said on Friday.

In the current financial year, MRPL has signed a term contract to import 132,000 bpd from Iran, but it actually received more than 150,000 bpd. MRPL expects supplies to also exceed the contracted amount for 2009/10.

"Next year also we see imports of Iranian crude to be of the order seen this year. Their crude suits MRPL's refinery," the source told Reuters.

Besides Iran, the firm also has a term contract with Abu Dhabi National Oil Company (Adnoc) and Saudi Aramco for 22,000 bpd each of crude supplies.

"For next year, MRPL is seeking higher volumes of Arab Super Light within its term deal. Discussions are on with Saudi Aramco on this... There are indications that they (Saudi Aramco) may consider the demand," he said.

But Saudi Arabia is keeping its crude output just below 8 million bpd, in line with its Opec commitments to curb production.

"In case MRPL does not get higher volumes of Super Light, it may look at raising supplies from Adnoc or tapping the spot market," he said.

MRPL normally buys Murban grade from Adnoc. In June 2008, MRPL imported its first-ever cargo of naphtha-rich Arab Super Light, Saudi Arabia's lightest crude.

The source said MRPL may buy about 20,000 bpd (7.3 million barrels) of crude via spot tenders in the next fiscal year, up from just one 650,000-barrel spot cargo in the current fiscal year.

MRPL managing director UK Basu declined to comment on the term contracts for the Middle Eastern barrels, but said the firm would be regularly buying crude via tenders in the next fiscal year.

When asked about its crude import strategy, an MRPL spokeswoman said on Friday: "I cannot comment. It is a confidential corporate decision."

MRPL, a subsidiary of state-run exploration firm Oil and Natural Gas Corporation, runs a 194,000-bpd coastal refinery in the southern Indian state of Karnataka.

ONGC would also supply domestic crude and its share of Sudan's Nile Blend to the refiner. MRPL plans to buy 10,000 bpd of Nile Blend crude in 2009/10.

Basu said on Thursday his refinery has been allocated 36,000 bpd by ONGC, but the actual supplies could be less as production from Mumbai High is declining.

Output at ONGC's Mumbai High fields declined 6.2 percent to 1.43 million tonnes in January from a year earlier. Mumbai High fields account for more than half of India's annual crude oil production.-Reuters