India wants to increase oil imports from Brazil through long-term deals • EconoJournal

May 12,2022

India wants to increase oil imports from Brazil through long-term deals • EconoJournal

The Asian oil minister said he was ready to “multiply” purchases from Brazil. India is one of the major importers of crude oil in the world and has oil companies operating in Brazil. Argentina is trying to bring Indian investment into the Vaca Muerta, but so far it has not been successful. Kafiro reiterated his call to invest in Newquen training during his visit to New Delhi.

India has informed Brazil of its intention to significantly increase crude oil imports through special long-term agreements. The country, one of the world’s leading importers of crude oil, also announced Forming an alliance with Brazil To promote bioenergy and biofuels.

Indian Oil Minister, Hardeep Singh PuriTold the Minister of Mines and Energy of Brazil. Pento AlbuquerqueThe interest of your country Will increase significantly Purchase of crude. “We inform the Hon’ble Minister that we are ready to increase crude oil imports from Brazil many times over,” Puri said. The Asian country wants to import oil from Brazil under “special long-term agreements”, the government said without providing further details.

The conversation was in the context of a trip to New Delhi by a group of Brazilian officials and businessmen last week. The Governments of India and Brazil announced the formation of an alliance to promote biofuels and biofuels. In an official statement, the ministers said they had “discussed opportunities that will open up India and Brazil with continued growth in the coming decades, increasing energy demand and the need for diversification of resources.”

India’s interest in increasing domestic production of biofuels is explained by its high dependence on crude oil imports. India is the third largest importer of oil in the world. It imports 84% ​​of the daily intake of oil. To alleviate this dependence, they are trying to increase the ethanol reduction in petrol to 20% by 2025.

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Opportunity
The bulk of India’s crude oil imports come from the Middle East. In 2021 only 9% came from Latin America. Brazilian oil is a small part of Indian crude imports, but for Brazil it is one of the main job markets. India was Brazil’s third largest oil exporter by 2021, according to FazComex, according to data from the country’s Ministry of Economy.

Crude oil exports to India totaled $ 2.2 billion, slightly lower than exports to China (US $ 14.3 billion) and the United States (US $ 3.1 billion).

“Oil is the largest commodity in our trade reserves with India, accounting for 42% of our exports to India. They are interested in increasing imports from Brazil. If anything is going to increase, it is our oil exports to India,” Albuquerque said.

Currently, various oil companies from India explore and produce small quantities of oil in Brazil. ONGC Videsh, a subsidiary of the state oil company Oil and Natural Gas Corporation Limited (ONGC) is the most suitable. ONGC Videsh, along with Shell, has been producing about 7,000 barrels a day at the Pacia de Campos. Indian oil companies have recently decided to move forward with new projects on Serge Beach in partnership with Petropras.

Interested in Vaca Muerta?
India’s interest in Brazilian oil contradicts Argentina’s failure to attract investment from that country to the Vaca Muerta.

Precisely, Foreign Minister Santiago Kafiro during his visit to India highlighted investment opportunities in Argentina and in particular. Kafiro met his Indian envoy Subramaniam Jaisankar on Sunday within the framework of the Bilateral Strategic Association Program. The Foreign Ministry acknowledged the ministers’ broad potential in terms of energy and lithium, and Argentina called on companies linked to the Indian hydrocarbon sector to participate in oil and gas exploration and exploitation activities at Vaca Muerta.

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The invitation is not new. Argentina has been trying for years to attract investment from India in oil and gas, which has been a recurring theme in bilateral talks. That agenda led to a reconciliation between YPF and ONGC Videsh in 2020. YPF CEO, Sergio Affronti and ONGC Director, Alok Gupta held a meeting via video conference. Analyze the effectiveness of the training Unusual. The meeting was organized at the request of Indian Ambassador to Argentina Dinesh Patia and was attended by officials from the Indian Ministry of Petroleum and Natural Gas.