India’s largest refiner, Indian Oil Corp, has purchased about 7 million barrels of crude for March delivery as it speeds up a shift away from Russian oil and expands sourcing from Africa, the Middle East and Latin America.
The increased purchases from Angola are helping India reduce its dependence on Russian supplies as it responds to pressure from the European Union and the United States.
According to Business Insider Africa, The deal underscores Angola’s growing importance as a supplier to Asian refiners.
As sub-Saharan Africa’s second-largest oil exporter, Angola offers politically stable supplies of high-quality crude, making it an increasingly attractive alternative for buyers seeking to diversify away from sanctioned producers.
Reuters reported that Indian Oil bought 1 million barrels each of Angola’s Hungo and Clove crude grades from ExxonMobil.
Angola, which produces around 1.1 million barrels per day, is the second-largest oil producer in sub-Saharan Africa after Nigeria and is a major source of medium-to-light sweet crude favored by Asian refiners for its high transport fuel yields.
The Angolan cargoes formed part of a broader slate assembled by Indian Oil to replace Russian supplies.
The refiner also purchased 1 million barrels of Abu Dhabi’s Murban crude from Shell, 2 million barrels of Upper Zakum from trader Mercuria, and 2 million barrels of Brazil’s Buzios grade from Petrobras under an optional contract that allows for flexible pricing and delivery terms.
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Russia became India’s largest oil supplier after the war in Ukraine began in 2022, shipping large volumes at discounted prices.
However, refiners have been forced to diversify again following tougher sanctions imposed in October on major Russian producers and traders.
Trade data show India’s imports of Russian crude fell to a two-year low in December, while the share of supplies from OPEC members climbed to an 11-month high.
Angola’s Hungo and Clove grades are particularly attractive to Asian buyers because of their consistent quality and suitability for complex refineries.
The country holds proven oil reserves of about 7.78 billion barrels and has been working to stabilise output while drawing new investment into mature offshore fields.
India’s shift comes as New Delhi looks to strengthen trade relations with the United States and reduce exposure to sanctions-related risks.
The strategy could extend further as India moves to finalise a free trade agreement and sign a new security and defence partnership with the European Union, signalling a notable pivot away from its BRICS partner, Russia.
Rising crude imports from Africa and the Middle East could also support diplomatic efforts, secure more favourable trade terms and help ease tariff pressures.
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Image Credit: Hindustan Times
