The Singapore office, two senior company executives said, would also help the company trade in energy derivatives, international financing and other joint ventures that the company may plan in the future.

BPCL, which has posted nearly 108 per cent jump in net profit for financial year 2014 at Rs 3,910.68 crore, said a trading desk at Singapore would allow it better its information gathering on crude oil and ensure flexibility.

“A desk gives the flexibility to enter and exit markets whenever required because operations are 24/7. But in a tender system, enter or exit is possible only at the time fixed in the contract,” a BPCL official added.

In the international oil market, most products are bought and sold through trading desks; the process is similar to that of forex trading at banks. The desk is manned by a licensed trader and trades take place instantly.

Such a desk helps traders watch out for arbitration possibilities and support agreements between companies and investors.

For Indian companies, West Asia is a natural source of crude oil supply due to the geographical proximity. BPCL and its group company require approximately 22 million metric tonnes of international crude per annum.