- India’s imports of Russian crude are a win-win for world oil markets, said Oil and Natural Gas Corporation Ltd (ONGC), India’s No. 1 oil company.
- According to the ONGC, by importing from Russia, India has helped the global economy by freeing up some Gulf oil for other countries to import.
Oil storage tanks in Tuapse, Russia, on Sunday, March 22, 2020. India’s imports of Russian crude are a win-win for the global economy, the Oil and Natural Gas Corporation said.
Bloomberg | Bloomberg | Getty Images
SING`ORE – India’s imports of Russian crude represent a win-win for the global economy, according to India’s largest oil company, Oil and Natural Gas Corporation.
“By importing from Russia, India has also helped the global economy in that sense.” [we] This freed up some of the oil in the Gulf for other countries, particularly Europe. So it was kind of a win-win,” said KC Ramesh, Managing Director of ONGC, at S&P Global Insights’ annual `PEC energy conference in Singapore.
Since Russia’s invasion of Ukraine in February last year, India’s refiners have been snapping up discounted Russian oil. Since then Moscow has become India’s leading source of crude oil and is responsible for about 40% of India’s crude oil imports.
World powers, including the European Union and the Group of Seven, have imposed sanctions and restrictions on Russia’s oil exports since its unprovoked war in Ukraine.
India’s economy has benefited from the reduced prices, said Ramesh.
“[It has] a very big impact on our economy when it comes to helping the [Indian] “The economy is growing… the price we’re getting from Russia is very reasonable,” Ramesh said.
God has given India many things… but no resources. Limited amount of oil and limited amounts of gas.
Fereidun Fesharaki
Chairman of the FGE
India’s purchase of cheap Russian crude has drawn widespread criticism from the West. In May, EU chief diplomat Josep Borrell urged the bloc to crack down on India, which resells refined Russian oil to Europe.
India is the third largest energy importer in the world and buys more than 80% of its crude oil on international markets. India’s sources of crude oil come mostly from the Middle East and Russia, according to July data from S&P Global.
“God has given India many things … but no resources,” said Fereidun Fesharaki, chairman of energy consultancy Facts Global Energy, at a separate panel discussion.
“Limited amounts of oil and limited amounts of gas,” he said.
However, India is also investing in upstream opportunities in the oil industry.
“We plan to have minimal investments in survey and exploration,” Ramesh said, citing an investment of approximately $44 billion over the next three years.
The upstream segment of the oil and gas industry refers to the prospecting for oil or gas deposits and their subsequent extraction.
“We need fuel. And that’s exactly what we’re planning. So the investments will be there for sure.”
Comments are closed.