Indian Oil Corporation (IOC) has closed key deals with suppliers in Angola, Brazil and the United Arab Emirates for the month of March. This move comes in response to a sustained reduction in purchases of Russian oil, a source that had dominated India’s energy supply. Indian energy supply since the start of the conflict in Ukraine in 2022.
New contracts strengthen crude oil imports
According to industry sources, IOC has acquired a total of seven million barrels in deals designed to diversify its portfolio. Purchases include Murban grade barrels from Abu Dhabi through Shell, as well as Upper Zakum negotiated with Mercuria. Angola also features in the new supply scheme, with Hungo and Clove barrels provided by ExxonMobil. Brazil, for its part, is represented with two million barrels of the crude Buzios acquired from Petrobras under a flexible contract.
This move aligns with a broader trend among Indian refiners, which are decreasing their reliance on Russian oil Russian oil in favor of Middle Eastern and Atlantic sources. Trade statistics show that imports from Russia fell to two-year lows in December, while shipments from OPEC countries reached their highest point in nearly a year.
Trade strategy and international sanctions
The shift is not merely logistical. Current decisions are influenced by Western sanctions on Russia and New Delhi’s strategic interest in strengthening trade ties with the United States, which could include a review of tariffs. At the same time, there is progress in geographic diversification of supply: IOC has also explored crudes from Colombia and Ecuador and Ecuador recently, broadening the range of suppliers.
Diversification has become a key tool to sustain the country’s refining pace and ensure long-term energy security.
Source: Reuters
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