In the context of changing environment, India is considering more diversification of its crude sourcing. At present, bulk of the crude -around 60%, is coming from Middle East. Diversification of supplies means tat the country is reducing its dependence on crude imports from Middle East led by Saudi Arabia.
Already premium pricing by Saudi Arabia, Iran’s entry into the world market and declining prices have added different dimensions to the crude market. India is third largest importer of crude after China and the US.
Minister of Petroleum and Natural Gas Dharmendra Pradhan at the India –Africa Hydrocarbon Conference at New Delhi has indicated that as a part of the diversification effort, more imports will be made from African countries. “As a matter of policy, the government is keen to move towards a geographically diversified energy basket”
He elaborated the government’s approach as there is larger investment by ONGC in African countries like Sudan.
The two day Fourth India Africa Hydrocarbon Conference is going on at New Delhi. Around twenty two countries especially that have substantial oil reserves are participating in the Conference.
Several projects are already undertaken by Public sector oil companies especially the ONGC in African countries. In Mozambique, the Indian companies – ONGC, BPCL and Oil India have 30% stake in gas and oil fields. Another African country where Indian companies have considerable investment is South Sudan.
At present, Middle East, Latin America and Africa are the three regions for the country’s oil import.