OMCs, private oil retailers to negotiate long-term oil deal with Russia: Source

OMCs and Private Sector Oil Retailers to Finalize Long-Term Oil Import Deal with Russia

New Delhi: State-run Oil Marketing Companies (OMCs) and private sector oil retailers are set to discuss the finer details of a long-term oil import agreement with Russia, according to a government source. This development follows the recent agreement between New Delhi and Moscow to explore new long-term oil import contracts during Prime Minister Narendra Modi's visit to Russia.

“Our current crude oil consumption stands at approximately 5.33 million barrels per day (mbpd) and is expected to exceed 6 mbpd. Therefore, India is seeking stable and predictable arrangements for oil supplies,” the source, who requested anonymity, stated.

This announcement comes in the wake of a joint statement released by India and Russia after the Prime Minister’s visit. The statement highlighted the critical role of energy cooperation as a cornerstone of the Special and Privileged Strategic Partnership. It emphasized the continued significance of bilateral trade in energy resources and noted the intention to explore new long-term contracts.

India, which ranks as the third-largest importer and consumer of crude oil globally, is planning to expand its oil refining capacity to 450 million tonnes per annum (MTPA) by 2030. This expansion aims to meet the growing domestic demand and enhance its export capabilities. Following the imposition of sanctions on Russia due to its invasion of Ukraine in 2022, India has emerged as a major buyer of discounted Russian crude oil.

During the Prime Minister’s visit to Moscow, discussions also included the potential for deeper partnerships with Russian energy giants such as Rosneft and other key entities in the Russian energy sector.