India Will Buy Russian Oil at a Discount, Says Hardeep Puri

India to Continue Russian Oil Purchases at Discounted Prices, Says Minister

India will continue to purchase crude oil from Russia if it is offered at a discount, according to Union Minister Hardeep Singh Puri. The government's priority is to acquire the most cost-effective crude oil available. "We used to buy less than 0.2 percent from Russia in February 2022. Now, we are buying 30 percent. If it's available at good discounts, we will buy it," Puri stated during a media interaction.

Puri, the Minister for Petroleum and Natural Gas, emphasized that India is not bound to any specific supplier. "If crude oil is available elsewhere at a discounted price, we will buy from that market," he added, highlighting Prime Minister Narendra Modi's commitment to ensuring affordable and continuous energy access while transitioning to green energy.

India's Energy Procurement Strategy

India's energy procurement strategy focuses on acquiring economically priced energy of the required grade for its refineries. The government is open to both long-term contracts and spot deals with various oil-producing nations. Tenders are issued based on specific route requirements at the point of importation, with payment terms following accordingly. Transactions are primarily conducted in US dollars, although the use of local currencies is being explored.

Refinery Project Updates

Regarding the Ratnagiri refinery project in Maharashtra, Puri mentioned that the initially proposed size of 60 million metric tons per annum is not currently feasible. Discussions are underway to potentially establish three refineries, each with a capacity of 20 million metric tons. The Ratnagiri Refinery and Petrochemicals Limited (RRPCL), established in 2017 by Indian Oil Corporation Limited, Bharat Petroleum Corporation Limited, and Hindustan Petroleum Corporation Limited, aims to develop an integrated refinery and petrochemicals complex on Maharashtra's west coast.

International Partnerships and Refining Capacity

Several international partners, including Saudi Aramco and the Abu Dhabi National Oil Company, have expressed interest in collaborating on the Ratnagiri project. India's refining capacity is also expanding, currently standing at approximately 268-270 million metric tons annually, with plans to increase it to 310 million metric tons per annum.

Despite production cutbacks by some producers, Puri noted that there is an abundant supply of energy in the market. "More and more crude is coming to the market," he observed, indicating a strong supply chain for India's energy needs.

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Categories: Hardeep Puri, India, Russian Oil