India Seeks Alternative Oil Supplies Amid Russian Sanctions
India‘s two major refiners, Hindustan Petroleum Corp. (HPCL) and Mangalore Refinery and Petrochemicals (MRPL), have purchased a total of 5 million barrels of crude oil from the United States, Iraq, and the UAE on the spot market to replace Russian supplies. The move comes in response to the Trump administration’s decision last month to sanction Rosneft and Lukoil, which together account for half of Russia’s oil exports and a significant portion of Indian imports.
According to Reuters, HPCL has acquired 2 million barrels of West Texas Intermediate (WTI) and 2 million barrels of Murban crude for delivery in January. MRPL, on the other hand, has purchased 1 million barrels of Basra Medium, also scheduled for delivery in January. The refiners’ search for alternative oil supplies follows the sanctions imposed by the US government, which aim to restrict Russia’s ability to export oil and gas.
Unusual Tanker Transfer Raises Questions
In a separate development, Bloomberg reported an unusual ship-to-ship transfer involving two tankers, both sanctioned by the European Union and the UK. The Ailana, one of the tankers involved in the transfer, had been idling for several weeks prior to the operation, which took place off the Indian coast last week. After the transfer, the receiving tanker, Fortis, continued on to the Indian port of Kochi, while the Ailana set off for Russia.
The unusual transfer has raised questions about the intentions behind the move and whether it is a sign of attempts by oil buyers to circumvent international sanctions against Russian crude. The incident highlights the complexities and challenges involved in enforcing sanctions in the global energy market.
India Explores Long-Term Energy Partnerships
In related news, Indian President Droupadi Murmu has emphasized the importance of long-term relationships between Indian oil and gas companies and Angolan energy entities. During a state visit to Angola, Murmu stated that India is interested in investing both in energy commodities and critical minerals with the West African country.
Angola’s role in India‘s energy security is crucial, as India is a major buyer of Angola’s oil and gas. Indian oil and gas companies are seeking long-term purchase contracts with Angolan entities to secure their energy needs. The move underscores India‘s efforts to diversify its energy supplies and reduce its dependence on Russian crude.
By Irina Slav for Oilprice.com
Original Article: India Races to Replace Russian Oil With U.S., Iraqi, and UAE Crude — Yahoo