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5 Feb, 2020 10:18

Rosneft inks deal with India’s top refiner on up to 2 MILLION tons of crude supplies

Rosneft inks deal with India’s top refiner on up to 2 MILLION tons of crude supplies

Russia’s energy giant Rosneft and state-owned Indian Oil Corporation (IOC) have agreed deliveries of 40,000 barrels of crude per day to India via the port of Novorossiysk by the end of this year.

The signing took place during Rosneft CEO Igor Sechin’s visit to New Delhi​​​.

“This is just the beginning,” said India’s Oil Minister Dharmendra Pradhan after meeting with Sechin.

Under the contract with Rosneft, Indian Oil will exercise its option to buy Russian grade Urals oil, an IOC source told Reuters. Indian state refiners typically buy Russian oil via the spot market rather than under a contract.

Also on rt.com India eyes opportunities for energy supplies from the Arctic as Russia invites strategic partner for joint exploration

As the world’s third-biggest oil consumer and importer, India has recently been diversifying the sources of its crude oil imports. The country which ships in more than 80 percent of its crude needs has been relying on the Middle East for most of its supply. However, its imports from the region slid to a four-year low in 2019.

According to the Indian oil minister, the South Asian country also wants to participate in the Vostok Oil project in the Russian Arctic.

Rosneft’s Vostok Oil was set up to explore the biggest existing oil deposits in northern Russia, including the Lodochnoye, Tagulskoye, and Suzunskoye oilfields, as well as other prospective oil sites. The project’s annual crude production could be up to 100 million tons, according to preliminary estimates.

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