Kathmandu. Indian Oil (IOC), India’s largest oil company, has stopped the deal to buy oil from Russia. The company was in talks to buy oil from Russia’s Rosneft, but now it has stopped.
India now wants to buy more oil from the US. It aims to reduce america’s trade deficit. US President Donald Trump has recently imposed a 26 percent tariff on India. India is one of the countries with a large trade deficit with the US. This is the reason why India wants to buy more crude oil from the US.
Indian Oil Chairman A S Sawhney said the decision was taken due to the market. “There is no pressure from the government. “We are not in talks with Rosneft at the moment, but we are ready for it,” he said. We buy oil according to our needs and prices.
Sahani said a profit of Rs 72.64 billion was posted from oil sales in the quarter to March. In the same period last year, the profit of oil sales was Rs 48.37 billion.
After the Ukraine war, Russia was giving oil to India at a discount. Russia has emerged as India’s largest supplier. But Russian exemptions have declined in recent months.
Meanwhile, Indian Oil has signed a major gas deal with global energy trader Trafigura. The deal is worth $1.4 billion and is for a period of 5 years. It will provide gas according to the price of America (Henry Hub). This has increased the possibility of gas coming from america. “Any oil should fit into the company’s model. This model looks at what kind of oil the market needs and where it can be obtained cheaply. ’
According to Sahni, now is not the right time for a term deal. He referred to ongoing geopolitical tensions with Russia and the availability of cheap oil from elsewhere.
In 2024-25, The share of Russian oil in indian oil procurement would be 22 percent. It was 31% in 2023-24. “Even before the new sanctions were imposed on Russia, there was a decline in the purchase of Russian oil. Indian Oil still buys Russian oil through tenders. This will continue if the prices are correct. ’
However, Sawhney refused to comment on whether there were any conditions for supply of gas from the US in the gas deal with Trafigura. Under this agreement, 2.5 million tonnes of LNG (liquefied natural gas) will be purchased. It will be shipped in 27 shipments and will start from the second second quarter of the financial year.
LNG is a type of gas. Which is made cold and liquid so that it can be easily transported on the ship. – Agency
