India Seeks to Boost Oil Imports from Brazil

New Delhi, Sep 20 (KNN) Union Minister of Petroleum and Natural Gas Hardeep Singh Puri, in his ongoing efforts to diversify India's energy imports, met with the President of Petrobras, Magda Chambriard, in Brasília. 

The discussions centered around expanding India’s crude oil purchases from Brazil and exploring joint ventures in offshore exploration projects, according to a post shared by the minister on X (formerly Twitter).

“We discussed steps to further enhance crude oil purchases between Petrobras and Indian energy companies and opportunities to collaborate in India & Brazil, especially in offshore deep/ultra-deep-water exploration and production projects,” Puri stated in the post. He also emphasized the need to capitalize on Indian investments in Brazil’s energy sector.

The meeting marks a key moment in India’s strategy to broaden its energy partnerships. Brazil, being one of the largest agricultural producers and a global leader in biofuels, presents an ideal partner as India transitions toward more sustainable energy solutions. 

The two nations plan to collaborate on the development of sustainable aviation fuels and will push forward the Global Biofuels Alliance agenda during Brazil's G20 presidency.

Puri also extended an invitation to Chambriard to participate in the India Energy Week scheduled for February 2025 in Delhi, highlighting India's intention to deepen bilateral energy cooperation.

India's Energy Diversification Drive

India, the world's third-largest oil importer, relies on foreign sources for over 80% of its crude oil needs. The nation has been actively seeking to diversify its import sources, driven by global energy market volatility, such as the Russia-Ukraine conflict. 

In line with this strategy, Indian oil companies—Indian Oil Corporation Ltd (IOCL), Hindustan Petroleum Corporation Ltd (HPCL), and Bharat Petroleum Corporation Ltd (BPCL)—have been negotiating long-term supply contracts with Petrobras.

These discussions are not new. In July, representatives from Indian oil majors visited Brazil, seeking to secure a reliable oil supply, with BPCL already testing Brazilian crude in its refineries. Indian Oil has a long-standing agreement with Petrobras for 1.7 million metric tonnes per annum (mmtpa) of crude oil, and BPCL holds a stake in a Brazilian ultra-deepwater hydrocarbon block, underlining India's growing presence in the region.

As India is set to outpace China in global oil demand by 2024, such partnerships are essential to ensuring a stable energy future for the country.

(KNN Bureau)