India Accelerates Strategic Shift from Russian Oil with Increased Angolan Crude Purchases
India’s largest refiner, Indian Oil Corporation, has purchased about two million barrels of crude oil from Angola for March delivery as it accelerates a strategic shift away from Russian supplies and deepens sourcing from Africa, the Middle East, and Latin America. The purchases underscore Angola’s growing importance in India’s crude import mix, helping New Delhi reduce its reliance on Russian oil amid mounting pressure from the United States and the European Union.
According to Reuters, Indian Oil acquired one million barrels each of Angola’s Hungo and Clove crude grades from ExxonMobil. The transaction highlights Angola’s position as a key supplier of high-quality crude to Asian refiners, offering political stability and medium-to-light sweet grades well suited to complex refining systems. Angola is sub-Saharan Africa’s second-largest oil producer after Nigeria, pumping around 1.1 million barrels per day. Its crude is prized by Asian buyers for its high transport fuel yield and consistent quality.
The Angolan barrels formed part of a broader crude slate assembled by Indian Oil to replace Russian supplies. The company also purchased one million barrels of Abu Dhabi’s Murban crude from Shell, two million barrels of Upper Zakum crude from trader Mercuria, and two million barrels of Brazil’s Búzios grade from Petrobras under an optional contract that allows for flexible pricing and delivery terms.
Russia had emerged as India’s top oil supplier following the outbreak of the Ukraine conflict in 2022, shipping millions of barrels at discounted prices. However, tougher sanctions imposed in October on major Russian producers and traders have forced Indian refiners to diversify once again. Trade data show that India’s imports of Russian crude fell to a two-year low in December, while the share of supplies from OPEC members rose to an 11-month high.
Angola holds proven oil reserves of about 7.78 billion barrels and is seeking to stabilise production while attracting new investment into mature offshore fields. Increased demand from Asia could support these efforts and strengthen the country’s position in global energy markets. India’s recalibration of crude sourcing aligns with broader efforts to strengthen trade relations with the United States and reduce exposure to sanctions-related risks.
Rising imports from Africa and the Middle East could also bolster India’s diplomatic engagement with key producing regions, support favourable trade negotiations, and help ease tariff pressures as global energy markets continue to realign.
Source: angolanminingoilandgas.com
