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Hit by rising fuel prices, India sources crude oil from Guyana

India started exploring options after the Organization of the Petroleum Exporting Countries and its alliance partners (OPEC+) extended the production cuts which New Delhi had opposed. The development has led to a spike in fuel prices. 

OPEC cuts and rising fuel prices India sources crude oil from Guyana-VPN
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Georgetown, First Published Jul 5, 2021, 9:22 AM IST
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Aiming to reduce the dependency on its traditional suppliers, especially Middle East nations, India has diversified its crude oil sourcing from Guyana, under which the first one million barrel Liza crude departed on Sunday for India. 

Informing about the development, the Indian High Commission in Guyana said in a tweet, "Concrete step in Indo-Guyana economic relations,1st 1 million barrels Liza crude for @IndianOilcl loaded from FPSO Liza Destiny destination, enhanced cooperation+important step in the diversification of crude sourcing+future roadmap.”

The cargo is expected to reach Paradip Port in Odisha in August. 

As per the reports, India started exploring options after the Organization of the Petroleum Exporting Countries and its alliance partners (OPEC+) extended the production cuts which New Delhi had opposed. 

The development has led to a spike in fuel prices. 

India is the third-biggest oil importer and consumer in the world. It imports around 84 per cent of its overall crude oil. Out of which more than 60 per cent was being imported from Middle East nations.

Earlier this year, in April, the first 1 million barrel cargo of Guyana's Liza light crude arrived in India. The oil was bought by Hindustan Petroleum Corporation Limited.

A few days ago, the petroleum ministry said in a tweet, "Under a G-to-G arrangement between India and Guyana, @IndianOilcl procured 1 million barrels of Liza crude. This is the first Guyanese crude oil purchase by an Indian PSU refiner, which is expected to arrive at Paradip port in the first week of August."

"The crude purchase from Guyana marks an important step in the diversification of crude sourcing by India. Also a beginning of a future roadmap of extended collaboration in oil and gas sector with Guyana," it added.

"Guyanese crude being loaded from FPSO Liza Destiny onto crude tanker 'Militos' for transportation to our Paradip Refinery. Indeed a giant step by India & #IndianOil towards diversification of crude sourcing," state-owned IOCL said.

As per the reports, in the past few months, India has imported less oil from OPEC+ countries.

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