India Will Continue Purchasing Russian Crude Oil If Offered at Discounted Prices, Says Hardeep Puri

Union Minister Hardeep Singh Puri stated that India will keep purchasing crude oil from Russia if it is offered at a discount. He stressed the government's aim to acquire the most cost-effective crude oil. "We used to buy less than 0.2 per cent from Russia in February 2022. Now, we are buying 30 per cent. If it's available at good discounts, we will buy it," Puri said during a media interaction.

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"If crude oil is available elsewhere at a discounted price, we will buy from that market," added Puri, who serves as the Minister for Petroleum and Natural Gas. He highlighted Prime Minister Narendra Modi's commitment to ensuring energy is accessible round the clock affordably while transitioning to green energy.

Energy Procurement Strategy

Puri clarified that India is not bound to purchase any specific quantity from any supplier. The focus remains on acquiring economically priced energy of the grade required by refineries. The government is open to both long-term contracts and spot deals with oil-producing nations.

He explained that tenders are issued at the point of importation based on specific route requirements. "Payment terms will always follow from that," he noted, adding that transactions are mostly in Dollars, though local currency use is being explored.

Refinery Project Developments

Addressing the Ratnagiri refinery project in Maharashtra, Puri mentioned its current size of 60-million metric tons per annum is not feasible. Discussions are ongoing about possibly establishing three refineries with a capacity of 20 million metric tons each.

The Ratnagiri Refinery and Petrochemicals Limited (RRPCL) was established in 2017 by Indian Oil Corporation Limited, Bharat Petroleum Corporation Limited, and Hindustan Petroleum Corporation Limited. It aims to develop an integrated refinery and petrochemicals complex on Maharashtra's west coast.

International Partnerships

Saudi Aramco and the Abu Dhabi National Oil Company have shown interest in partnering on this project. Despite these developments, Puri noted that India's refining capacity is increasing, currently standing at around 268-270-million metric tons annually, with plans to expand to 310-million metric tons per annum.

Puri also remarked on the abundant supply of energy despite production cutbacks by some producers. "More and more crude is coming to the market," he observed, indicating a robust supply chain for India's energy needs.