NEW DELHI: The disruption in Russian oil exports caused by the latest US sanctions will have no impact on India’s energy security in terms of supply as a diversified procurement matrix and technical flexibility allows Indian refineries to tap multiple alternatives, Arvinder Singh Sahney, chairman of IndianOil, told TOI.
“We are still understanding how things will pan out. But we are very confident that it (sanctions) will not have any impact on crude availability for Indian refineries. I can speak for all of them, even private (sector),” Sahney said in what is the first public comment on the issue by an Indian oil company chief.
He said, besides Russia, India buys crude from multiple sources – the Gulf, Africa, the Americas, Opec and non-Opec producers. New sources, such as Brazil and Guyana, are also emerging. “We have a wide range of contracts and alliances with all of them. So, we are not worried about supply.”
IOC chief’s confidence could also stem from the fact that the latest curbs impact roughly 15% of Russian oil exports, mostly sweet ESPO grade crude produced in the north and the Far-East and 183 of the 600 vessels in the Russian tanker fleet. Besides, there is no sanction on Rosneft, the largest Russian oil producer.
IndianOil posted a net profit of Rs 2,873.5 crore in Dec quarter, marking a 64% drop from Rs 8,063.6 crore in the previous corresponding quarter. “We are being very cautious,” he said since the latest sanctions have targeted Russian oil export chain.
On Trump administration’s plan to pump up oil and gas production, Sahney said it will boost supply and expand options in the market for Indian refiners. Whether that will lead to a pivot towards the US will depend on competitiveness of US prices. “As our govt has indicated, India is willing to buy energy from whoever offers the most competitive price.”
