Oil & Gas India’s oil major turns to Middle East amid Russian shortfall By Reuters December 30, 2024, 12:06 PM Reuters India's BPCL plans to buy 10,000 bpd of crude oil from Qatar under an annual deal State-run Indian refiner Bharat Petroleum Corporation (BPCL) is buying Middle Eastern crude to make up for a slowing supply of cheaper Russian oil, its head of finance Vetsa Ramakrishna Gupta said. Indian state refiners typically buy Russian oil in the spot market rather than under long-term contract, but have struggled to purchase 8 to 10 million barrels for January, sources said earlier this month. Delhi has become a top buyer of Russian oil shipments after the European Union imposed sanctions on Moscow following its invasion of Ukraine in 2022. Russian oil accounts for more than one-third of India’s energy imports, taking advantage of discounted crude. BPCL is not getting its full Russian oil supply from the spot market, Gupta told Reuters on December 26. “There may be a shortage of two to three cargoes per month. Whatever is the shortage of Russian crude, we are purchasing that from the Middle East,” he said, adding that its recent purchases included Omani oil. Russian crude makes up to nearly 37 percent at BPCL’s three refineries, which have a combined capacity of 706,000 barrels per day (bpd), he said. “Next year if there is any major impact on Russian supplies, we will explore more sources including WTI (West Texas Intermediate) crude or Middle Eastern crudes, whichever is cheaper,” Gupta said. Russian oil exports have fallen as domestic demand is rising and Moscow meets quotas under its pact with the Organization of the Petroleum Exporting Countries (Opec). The country’s output is also set to decline in 2024 from last year, the Interfax news agency reported on December 5. Oil shipments from UAE to Asia to be cut next year A new dawn for logistics as the GCC and India draw closer Exports to India from UAE more than double in November Additionally, Russian state oil company Rosneft has signed a deal with Indian private refiner Reliance to supply 500,000 bpd of crude for 10 years starting in 2025. That contract will account for about half of the company’s exports, reducing the supply available for other traders. BPCL is constantly diversifying its oil sources and purchased Argentinian crude this year. It also plans to buy 10,000 bpd of crude from Qatar under an annual deal, while keeping contracts with other suppliers intact, Gupta said.
