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India’s import of Russian oil less than 1% of total, share from US to rise: Petroleum Minister Hardeep Singh Puri

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In 2020-21, India imported 633,000 tonnes of 0.3 per cent whereas in 2019-20 the purchases have been 2.93 million tonnes or 1.3 per cent of complete imports, he mentioned.

India shopping for extra volumes of crude oil from Russia remains to be less than 1 per cent of the full oil imports whereas the volumes from the US will rise considerably, Petroleum Minister Hardeep Singh Puri mentioned on Monday.

Replying to supplementaries throughout the Question Hour within the Rajya Sabha, he mentioned India purchased 419,000 tonnes of crude oil from Russia throughout the first 10 months of the present fiscal yr that started in April 2020, which was 0.2 per cent of the full import of 175.9 million tonnes.

In 2020-21, India imported 633,000 tonnes of 0.3 per cent whereas in 2019-20 the purchases have been 2.93 million tonnes or 1.3 per cent of complete imports, he mentioned.

The assertion comes towards the backdrop of Indian companies selecting up distressed Russian cargoes being supplied at deep reductions. While Indian Oil Corporation (IOC) has purchased 3 million barrels by means of a dealer, Hindustan Petroleum Corporation Ltd (HPCL) has picked up 2 million barrels.

“We require a total of 5 million barrels per day. That is our (crude oil) consumption. 60 per cent of it comes from the Gulf,” he mentioned. “Even if we were to scale these up considerably, it would still be a drop, literally a drop, in a larger bucket.” Stating that oil imports from Russia are “minuscule”, he mentioned, “even now, the total amount contracted will be less than three days’ supply from Russia to India and that also spread over the next three to four months.” On the US, Puri mentioned India has a strong bilateral power relationship with Washington.

In the monetary yr 2020-21 (April 2020 to March 2021), India imported 14 million tonnes of crude from the United States, representing 7.3 per cent of complete imports.

“In the current year, based on our imports from the United States and if I look at the projection, these are likely to go up from 14 million tonnes to 16.8 million tonnes or a value of about USD 10 billion of imports of crude oil from the US,” he mentioned.

Adding imports of LNG and coal, the commerce might be shut to USD 13.5 billion, he mentioned. “So, it is a robust relationship on the energy front, and I see this continuing for some time.” On the affect of western sanctions on Indian funding in Russia, the minister mentioned Indian state oil companies have invested USD 16 billion in oil and fuel initiatives in Russia.

Some multinationals together with ExxonMobil and Shell have introduced exit from the Russian initiatives after Moscow invaded Ukraine.

This, Puri mentioned, is nuanced. “Some have indicated an intent to exit. Others have said they will not make a fresh investment. But, as I said, we are monitoring the situation.” Discussions are taking place on the highest ranges of these corporations. “I have no doubt that if those companies were to exit finally and if there are economic opportunities, that become available, we will, certainly, look at all those possibilities.” ONGC Videsh Ltd has a 20 per cent stake within the Sakhalin-I mission in Far East Russia from the place the operator ExxonMobil has introduced exit.

“We got worried when we read those reports because if the operator is exiting, then the facilities’ production will be undermined. But we were told that no. Production facilities will continue,” he mentioned.

On the four-month freeze on petrol and diesel costs regardless of the associated fee of uncooked materials (crude oil) climbing from USD 81-82 per barrel to USD 111 on Monday, he mentioned the involved oil companies will take a call.

“The concerned oil companies have not passed this (increase in crude oil price) on to the consumer. When they will, etc., these are decisions which they will have to take,” he mentioned.

Puri mentioned India had in November final yr joined different consuming nations such because the US, Japan and Korea to launch shares from strategic oil reserves. That “release had some sobering impact (on international oil prices).” But India didn’t be a part of the current inventory launch on the behest of the IEA.

“India had signalled an intent, a support, but we have not done the release,” he mentioned. “Releases from strategic reserves can have a limited impact in a given situation but when the international market is so roiled as it is today, high prices, I think, are of limited concern.”



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