NEW DELHI (CU)_African nations can play a major role in the diversification of oil and gas source in India, the oil minister in New Delhi said on Wednesday (24 March).
After OPEC+ decided to largely continue its production cuts through April, the South Asian nation has urged state refiners to accelerate the diversification of oil imports, thereby gradually reducing their dependence on Middle Eastern nations.
“As India seeks to further diversify sourcing of crude oil and LNG, Africa has a central role – largely due to its proximity and absence of any choke points in trans-shipments,” Dharmendra Pradhan, India’s Minister of Petroleum & Natural Gas and Steel, said.
India is the world’s third biggest oil importer, importing over 80 per cent of its oil needs. According to Pradhan about 34 million tonnes of oil were imported from the African continent, which accounted for about 15 per cent of total oil imports last year.
The South Asian nation traditionally buys oil from Nigeria, Algeria, Angola, Egypt and Equatorial Guinea, and in the recent years it has purchased oil from Ghana, Chad, Cameroon and Côte d’Ivoire as well.
Therefore, the oil minister noted that New Delhi would naturally be seeking commercial partners from Africa in order to import crude oil, LNG and other petroleum and energy products to meet the country’s growing energy needs.
India, being the third largest refiner in the world, is also a major exporter of refined fuels.
State-run Indian companies have invested $8 billion in petroleum and energy assets in the African continent, which is the second-largest destination for Indian refined fuels.
Pradhan further pointed out that the rising demand for fuel, skills, technology and investment in various African nations provides New Delhi with opportunities for equity investment and two-way tie-ups.
