India is putting emphasis on diversifying its crude oil sources: Pradhan

The Dollar Business Bureau

Highlighting the arrival of two shipments of crude oil from the US, Petroleum and Natural Gas Minister Dharmendra Pradhan said on Sunday that the country is emphasising on diversifying its sources for crude oil supply and tapping new markets.

The two shipments of 1.6 million barrels of American crude oil were landed at the Paradip Port, Odisha on October 2.

“India is putting a lot of emphasis on diversifying its crude oil supply sources and tapping new supply source,” Pradhan said in a meeting with OPEC’s Secretary General, Sanusi Mohammad Barkindo, who is in India for attending the first CERAWEEK India Energy Forum.

The three public sector refineries of India have already put a cumulative order of about 7.85 million barrel of crude oil from the US. Besides, a refiner from private sector has also put an order of around 2 million barrel of crude oil from the US, he was quoted as saying in an official statement.

During the meeting, the Minister highlighted that in current scenario of oversupplied market, it was vital for oil producing countries to understand the consumers’ perspective and the changes that took place in these demand hubs.

For this, Pradhan emphasised on the need to have improved and purposeful dialogues between the producing and consuming nations.

“OPEC should work towards “Responsible Pricing” which is important for India for socio-economic and developmental reasons,” he said.

Pradhan also put emphasis on India’s previous view of “Asian Dividend rather than charging Asian Premium” on the crude oil supplied to India and added that the countries such as India should be considered as the “preferred destination”.

Both sides have discussions the present scenario of the world’s oil and gas industry and also exchanged notes on the past developments. 

India’s engagement with the OPEC (Organisation of Petroleum Exporting Countries) is important as it imports around 86% of its crude oil requirement, 95% of LPG and 75% of natural gas, from OPEC members.