Indian Oil Buys Angolan Crude as India Accelerates Move Away from Russian Oil Supplies
India’s largest refiner, Indian Oil Corporation (IOC), has purchased about two million barrels of crude oil for March delivery as it accelerates a strategic shift away from Russian supplies and deepens sourcing from Africa, the Middle East, and Latin America.
The purchases underscore Angola’s growing importance in India’s crude import mix, helping New Delhi reduce its reliance on Russian oil amid mounting pressure from the United States and the European Union.
According to Reuters, Indian Oil acquired one million barrels each of Angola’s Hungo and Clove crude grades from ExxonMobil.
The transaction highlights Angola’s position as a key supplier of high-quality crude to Asian refiners, offering political stability and medium-to-light sweet grades well suited to complex refining systems.
Angola is sub-Saharan Africa’s second-largest oil producer after Nigeria, pumping around 1.1 million barrels per day. Its crude is prized by Asian buyers for its high transport fuel yield and consistent quality.
The Angolan barrels formed part of a broader crude slate assembled by Indian Oil to replace Russian supplies.
The company also purchased one million barrels of Abu Dhabi’s Murban crude from Shell, two million barrels of Upper Zakum crude from trader Mercuria, and two million barrels of Brazil’s Búzios grade from Petrobras under an optional contract that allows for flexible pricing and delivery terms.
Africa’s role in this reshuffling of crude flows is attracting growing attention as India recalibrates its import strategy.
Russia had emerged as India’s top oil supplier following the outbreak of the Ukraine conflict in 2022, shipping millions of barrels at discounted prices. However, tougher sanctions imposed in October on major Russian producers and traders have forced Indian refiners to diversify once again.
Trade data show that India’s imports of Russian crude fell to a two-year low in December, while the share of supplies from OPEC members rose to an 11-month high.
Angola’s Hungo and Clove grades are particularly attractive due to their compatibility with complex refineries and reliable quality specifications.
Angola holds proven oil reserves of about 7.78 billion barrels and is seeking to stabilise production while attracting new investment into mature offshore fields. Increased demand from Asia could support these efforts and strengthen the country’s position in global energy markets.
Implications for Energy Security and Trade
India’s recalibration of crude sourcing aligns with broader efforts to strengthen trade relations with the United States and reduce exposure to sanctions-related risks.
The strategy may extend further as New Delhi moves to finalise a free trade agreement and deepen security and defence cooperation with the European Union, signalling a notable pivot away from its traditional reliance on Russia.
Rising imports from Africa and the Middle East could also bolster India’s diplomatic engagement with key producing regions, support favourable trade negotiations, and help ease tariff pressures as global energy markets continue to realign.
