OMCs, private oil retailers to negotiate long-term oil deal with Russia: Source

New Delhi: State-run Oil Marketing Companies (OMCs) and private sector oil retailers will discuss the finer details of a long-term oil import deal with Russia, said a government source a day after New Delhi and Moscow agreed to explore new long-term oil import contracts during Prime Minister Narendra Modi’s visit. “Our current crude oil consumption is about 5.33 mbpd. And it is poised to grow to 6-plus mbpd. Therefore, India is looking for arrangements that are stable and predictable,” said the source while declining to be identified.

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The news comes a day after a joint statement released by India and Russia after PM’s visit said, “The Sides reiterated the importance of the robust and wide ranging cooperation in the energy sector as a significant pillar of the Special and Privileged Strategic Partnership. In this context, the Sides noted the continued special importance of bilateral trade in energy resources and agreed to explore new long term contracts.”

India looks for oil supplies as it expands its refining capacity

India, which is the third largest importer and consumer of crude oil, is planning to expand its oil refining capacity to 450 MTPA by 2030 to cater to its rising domestic demand and the export market. The country has emerged as the biggest buyer of Russian crude oil sold at a discount in the wake of the sanctions imposed on Russia over its invasion of Ukraine in 2022. During PM’s visit to Moscow, the two sides have discussed building partnerships with Rosneft and other energy entities in Russia.

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