India overtakes China as the largest importer of Russian oil

India has become the world’s largest importer of Russian oil, overtaking China, Reuters he reported. Indian trade and industry supply data showed the country imported 2.07 million barrels per day (bpd) of Russian crude in July, good for a 4.2% M/M and 12% Y/Y increase. According to Chinese customs data, crude oil imports from India in July exceeded of China 1.76 million bpd through pipelines and transports.

Indian refiners have been buying Russian crude at a discount to Brent since Western nations cut imports of Russian energy products following the Ukraine invasion. India’s purchase of Russian ESPO Blend crude rose to 188,000 bpd in July as larger Suezmax vessels were deployed. Refineries in northeastern China are typically the biggest ESPO buyers due to their proximity to Russia; however, they are now buying less because of the hot demand for fuel.

“India’s need for Russian oil will increase as long as sanctions are not tightened,“, an Indian refining source told Reuters.

India is also looking to develop its own oil fields in the coming years. Four largely unexplored sedimentary basins of India could hold up to 22 billion barrels of oil, S&P Global Commodity Insights reported. In fact, the lesser-known Category II and III basins, namely the Mahanadi, Andaman Sea, Bengal and Kerala-Konkan, contain more oil than the Permian Basin, which has already produced 14 billion of its 34 billion barrels. recoverable oil reserves.

Rahul Chauhan, an upstream analyst at Commodity Insights, highlighted the potential of India’s untapped oil and gas sector, ”ONGC and Oil India hold acreage in Andaman waters under the Open Surface Licensing Program (OALP) and have several significant projects planned. However, India is still awaiting the entry of an international oil company with expertise in deep and ultra-deep water exploration to participate in the current and future OALP bidding rounds and to explore these frontier regions.s”, he declared.

Currently, only 10% of India’s 3.36 million sq km sedimentary basin is being explored. However, Petroleum Minister Hardeep Singh Puri says the figure will rise to 16 per cent in 2024 after blocks are awarded under the Open Surface Licensing Policy (OALP) rounds. So far, the OALP has resulted in the award of 144 blocks covering approximately 244,007 sq km.

By Alex Kimani for OIlprice.com

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