India’s state-run refineries are turning to Nigerian crude oil to meet their supply needs, marking a notable change in global energy trade flows.
Between September and October 2025, over two million barrels of Nigerian oil are expected to arrive in India, as mounting political pressure from the United States pushes the South Asian nation to scale back its purchases from Russia.
Industry sources reveal that the Indian Oil Corporation (IOC) recently secured one million barrels of Nigerian Agbami crude for September delivery through a tender awarded to global trading company Trafigura.
This purchase is part of a broader wave of acquisitions by Indian refiners, who have been sourcing millions of barrels from non-Russian suppliers in recent weeks.
Bharat Petroleum Corporation Limited (BPCL), the country’s second-largest state refiner, has also made spot market purchases while negotiating additional September deliveries, according to the Punch.
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Recent deals for the South Asian market include one million barrels of Angola’s Girassol, one million barrels of US Mars, three million barrels of Abu Dhabi Murban, and two million barrels of Nigerian crude, all set for delivery in September and October.
This pivot follows the decision by Indian state refiners to halt Russian crude purchases in late July, in response to a delay urged by US President Donald Trump.
Since Russia’s 2022 invasion of Ukraine, India has been among the few major buyers of discounted Russian oil, taking advantage of lower prices while avoiding Western sanctions.
That strategy had largely kept Indian refiners out of the spot market for other suppliers until now.
For Nigeria, these recent sales mark a stronger foothold in the Asian market, an arena historically dominated by Middle Eastern producers.
Nigerian crude, valued for its low sulfur content, is well-suited to India’s refineries, which produce large volumes of gasoline and diesel for both domestic use and export. However, analysts point out an irony in the oil trade.
While Nigeria is shipping millions of barrels to India, the Dangote Oil Refinery, Africa’s largest, located in Nigeria, is increasingly sourcing crude from the United States.
This reflects the complex realities of global oil trading, where price, supply logistics, and refining needs often outweigh geographic closeness or local production capacity.
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Image Credit: Bloomberg
