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Union Minister Hardeep Singh Puri meets President of Brazilian energy major Petrobras Magda Chambriard in Brasilia on Sept 20, 2024 | Image: Hardeep Singh Puri/X
India is in discussions with Brazil to raise oil imports, Union Minister of Petroleum and Natural Gas Hardeep Singh Puri said on Friday. Puri met with the President of Petrobras, Magda Chambriard in Brasília to strengthen bilateral energy ties between India and Brazil.
In a post on X (formerly Twitter), Puri shared that the two discussed increasing crude oil purchases between Petrobras and Indian energy companies, as well as exploring collaboration opportunities in offshore deep and ultra-deep-water exploration projects.
“We discussed steps to further enhance crude oil purchases between Petrobras and Indian energy companies and opportunities to collaborate in India & Brazil, especially in offshore deep/ ultra-deep-water exploration and production projects. We also discussed the way forward to better monetise our investments in Brazil,” the minister said.
“Brazil is one of the world’s largest agricultural producers and the global pioneer in biofuels such as ethanol & vegetable oil-derived biodiesel. India and Brazil will also work in development of sustainable aviation fuels and take forward the agenda of Global Biofuels Alliance in Brazil’s G20 presidency. I also invited her to participate in India Energy Week being organised in Delhi from Feb 11 to 14, 2025,” he said.
Happy to meet the President of Brazilian energy major @Petrobras Ms Magda Chambriard in Brasilia today.We discussed steps to further enhance crude oil purchases between Petrobras and Indian energy companies and opportunities to collaborate in India & Brazil, especially in… pic.twitter.com/x5A32kfMIT
— Hardeep Singh Puri (@HardeepSPuri) September 20, 2024
India’s push for energy diversification
India, the world’s third-largest importer of crude oil, has been actively seeking to diversify its energy imports, particularly in light of the ongoing geopolitical tensions like the Russia-Ukraine war. In line with this strategy, Indian oil companies — Indian Oil Corporation Ltd (IOCL), Hindustan Petroleum Corporation Ltd (HPCL), and Bharat Petroleum Corporation Ltd (BPCL)—have been in negotiations with Petrobras for long-term crude oil supply contracts as earlier reported by Business Standard.
In July, representatives from IOCL, HPCL, and BPCL visited Brazil in April to kick off these negotiations. The objective is to secure a steady supply of crude oil from Petrobras, with BPCL already testing Brazilian crude in its refineries. However, no final agreements have been announced.
Indian Oil previously signed a long-term supply contract with Petrobras for 1.7 million metric tonnes per annum (mmtpa) of crude oil. In 2022, BPCL established a memorandum of understanding (MoU) with the Brazilian oil giant, strengthening their partnership amid global energy supply disruptions. Additionally, BPCL, through its subsidiary Bharat PetroResource Ltd, holds a stake in an ultra-deepwater hydrocarbon block in Brazil, highlighting India’s expanding presence in the South American energy market.
Earlier this month, Oil Secretary Pankaj Jain also said that India wanted oil producers Organization of the Petroleum Exporting Countries and allies to raise oil output to meet rising demands in emerging markets like India.
India reportedly imports more than 80 per cent of its oil needs from overseas. The country is also expected to lead global oil demand in 2024, surpassing China, according to the latest report by the International Energy Agency (IEA).
First Published: Sep 20 2024 | 12:25 PM IST
