SEATTLE (Oil Monster): Two Indian refiners have secured 4 million barrels of crude oil from US major Exxon Mobil, marking their first imports from Guyana. Deliveries are scheduled for late 2025 or early 2026, Reuters reported on Friday.
Indian Oil (IOC), the country's largest refiner by capacity, has purchased 2 million barrels of Golden Arrowhead (GAH) crude, expected to arrive in late December or early January. Hindustan Petroleum (HPCL) has acquired 2 million barrels of Liza and Unity Gold oil, also for delivery during the same period, Reuters reported.
This acquisition reflects India's ongoing efforts to diversify its crude oil sources. Guyana's oil production, led by Exxon Mobil's consortium, has increased to 770,000 barrels per day following the start-up of its fourth floating production facility. The country's crude exports reached a record 938,000 bpd in October, data from analytics firm Kpler showed, since the introduction of the GAH grade in July.
India has been actively seeking to diversify its crude oil imports in recent years. In 2021, IOC made its first purchase of Guyanese Liza crude as part of this strategy. Additionally, in early 2024, India and Guyana signed a five-year memorandum of understanding (MoU) for cooperation in energy, including sourcing crude oil, refining, and exploration activities. This MoU laid the groundwork for deeper energy ties between the two nations.
Furthermore, geopolitical factors have influenced India's diversification efforts. Following recent trade discussions between the United States and India, Indian refiners have begun to reduce their imports of Russian oil by 50 per cent, according to a White House official. This shift underscores India's strategy to mitigate reliance on any single source and to align with global energy security considerations.
Courtesy: www.businessworld.in
