Indian Oil Giants Abandon Russia, Boost Nigerian Crude Imports by 22 Million Barrels
India’s largest state refiners have made a dramatic pivot away from Russian crude, purchasing at least 22 million barrels of non-Russian oil for September and October delivery following pressure from the U.S. administration. The move marks a significant shift for Indian Oil Corp and Bharat Petroleum, which had largely relied on cheaper Russian crude since Moscow’s invasion of Ukraine in 2022.
The massive procurement includes substantial purchases from Nigerian oil fields, with BPCL alone securing 2 million barrels of Nigerian crude among its 9-million-barrel September acquisition. Indian Oil Corp’s latest tender secured 2 million barrels of U.S. Mars crude, 2 million barrels of Brazilian grades, and 1 million barrels of Libyan crude, with BP selling the Mars cargo at $1.5-$2 above September Dubai quotes.
The combined spot purchases by both refiners represent approximately 6% of India’s total crude processing capacity recorded in May, signaling a major restructuring of India’s energy supply chains. The shift comes after Indian state refiners paused Russian purchases in late July following diplomatic pressure, ending a two-year period of heavy reliance on discounted Russian oil.
Industry sources indicate that improved arbitrage economics for Atlantic Basin grades to Asia are supporting these large-scale purchases, making non-Russian alternatives more economically viable for Indian refiners.
Source: channelstv.com
