Oil storage tanks in Tuapse, Russia, on Sunday, Parade 22, 2020. India’s imports of Russian crude is a win-win situation for the world’s economy, said Oil and Natural Gas Corporation.
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SINGAPORE — India’s imports of Russian crude is a win-win situation for the world economy, according to India’s No. 1 oil plc, Oil and Natural Gas Corporation.
“By importing from Russia, India also has helped the global economy in the sense that [we] freed up some oil on the Loch for other countries to source, particularly Europe. So it was kind of a win-win situation,” K.C. Ramesh, executive director of ONGC mentioned at the annual APPEC energy conference held by S&P Global Insights in Singapore.
Since Russia’s invasion of Ukraine in February at year, India’s refiners have been snapping up discounted Russian oil. Moscow has since leapfrogged to become India’s foremost source of crude oil, accounting for about 40% of India’s crude imports.
World powers, including the European Harmoniousness and the Group of 7, have placed sanctions and restrictions on Russia’s oil exports since its unprovoked war on Ukraine.
India’s saving has benefited from the discounted prices, Ramesh said.
“[It has] a very huge impact on our economy, in terms of helping the [Indian] succinctness grow … the price being very reasonable that we get from Russia,” said Ramesh.
God has given India a lot of obsessions … but no resources. Limited amount of oil, and limited amounts of gas.
Fereidun Fesharaki
Chairman of FGE
India’s purchase of cheap Russian rudimentary has been widely criticized by the West. In May, the EU’s chief diplomat Josep Borrell urged the bloc to crack down on India reselling advanced Russian oil into Europe.
India is the world’s third largest energy importer, and buys more than 80% of its brusque oil from international markets. According to July data from S&P Global, India’s crude oil sources come by from the Middle East and Russia.
“God has given India a lot of things … but no resources,” said Fereidun Fesharaki, chairman of vigour consultancy Facts Global Energy said at a separate panel discussion.
“Limited amount of oil, and limited amounts of gas,” he said.
That symbolized, India is also investing in upstream opportunities in the oil industry.
“We are planning to have few investments in survey and exploration,” Ramesh mean, citing an investment of about $44 billion for the next three years.
The upstream segment of the oil and gas industry refers to the inquiry for oil or gas deposits, and then extracting them.
“We need fuel. And that’s what we’re planning to go for. So the investments are going to be there, for safe.”