India is turning increasingly to Nigeria for crude oil as growing tensions linked to the US-Iran crisis continue to disrupt oil shipments from the Middle East. State-owned Hindustan Petroleum Corporation Limited (HPCL) has purchased a combined four million barrels of Nigerian crude, highlighting the growing importance of West African oil in India’s efforts to keep its refineries supplied.
The latest deal saw HPCL acquire two million barrels through separate tenders, including one million barrels each of Forcados and Bonga crude from Shell. The shipments are expected to supply HPCL’s Visakh refinery in Andhra Pradesh, which has the capacity to process about 300,000 barrels of crude oil per day.
HPCL had earlier purchased another two million barrels of Nigerian crude from commodity trader Glencore. That transaction included one million barrels each of Okwuibome and Utapate crude, with the cargoes destined for HPCL’s Rajasthan refinery. The refinery, operated by HPCL Rajasthan Refinery Limited, has a processing capacity of 180,000 barrels per day.
The buying spree reflects a broader shift among Indian refiners as disruptions around key Middle Eastern shipping routes, including the Strait of Hormuz and Bab el-Mandeb, make traditional supplies less predictable. Other Indian refiners are also looking beyond the Middle East, with purchases recently made from Oman, Angola, Congo and other West African producers as companies race to secure reliable crude supplies.
The development could provide a fresh boost for Nigerian oil exports as international buyers search for alternatives to Middle Eastern crude. With Indian refiners expanding their purchases from Africa and oil prices rising to around $81 per barrel, Nigeria’s position in the global oil market could become increasingly important as the Middle East supply crisis continues to put pressure on international energy markets.
source: Punch
