- IOC turns to Nigerian and Middle Eastern oil to reduce reliance on US imports.
- This move aims to strengthen energy security and build ties with new suppliers.
The Indian Oil Corporation (IOC) has turned to Nigerian and Middle Eastern oil as India shifts its procurement strategy to diversify energy sources and strengthen security. The company actively reduces purchases from the United States while increasing imports from West Africa and the Gulf. This change underscores India’s determination to spread supply risks and protect long-term energy interests.
IOC recently secured two million barrels of Nigerian crude and one million barrels of Abu Dhabi’s Das grade. Nigerian grades, Agbami and Usan, were bought from TotalEnergies, while Shell supplied the Das cargo. Deliveries are expected at Indian ports between late October and early November.
Previously, IOC relied heavily on the United States, purchasing five million barrels of West Texas Intermediate (WTI). Now, tightening sanctions linked to Russia’s war in Ukraine, alongside rising geopolitical risks, are driving a strategic pivot.
India has also bought discounted Russian crude, which shielded its economy from global price shocks. However, as sanctions intensify and competition for barrels grows, IOC is turning decisively to Africa and the Middle East. This approach secures steady supplies and supports the economies of Nigeria and Angola.
Nigeria, in particular, stands to benefit. India’s increased demand helps stabilise Nigerian export revenues despite global oil market volatility. IOC obtained Nigerian cargoes on a free-on-board basis, while Shell’s Das crude arrived delivered, showcasing flexible arrangements.
This adjustment demonstrates India’s proactive stance in a rapidly changing energy landscape. By diversifying its sources, IOC reduces over-reliance on one region. At the same time, the company strengthens India’s energy resilience and deepens partnerships with resource-rich nations in West Africa and the Gulf.