India, the world’s third greatest oil importer, is trying to safe a long-term crude oil provide deal from Namibia, which is being hailed for one of many world’s largest oil finds in latest years, mentioned two individuals conscious of the event.
This is a part of India’s aggressive energy-sourcing diversification playbook.
India’s plan of charting new geography to satisfy its vitality wants comes towards the backdrop of French vitality majors TotalEnergies and Shell Plc making “large” oil discoveries.
India has been trying to diversify its energy supplies with Indian Oil Corp. recently signing a long-term contract to procure crude oil from Colombia’s state-run Ecopetrol SA and Brazil’s state-run Petroleo Brasileiro SA (Petrobras).
“There has been a huge find in Namibia in February this year. We get some oil from Namibia but not in a large quantity. This is a long-term contract that we are looking for as it sequesters us from the vagaries of the global energy markets,” mentioned a senior Indian authorities official, one of many two individuals talked about above, requesting anonymity.
TotalEnergies is the operator with a 40% working curiosity in Block 2913B that covers round 8,215 sq km in Namibia’s deep offshore. The different companions are QatarEnergy (30%), Impact Oil and Gas (20%), and state-run National Petroleum Corporation of Namibia or NAMCOR (10%). With 45% working curiosity, Shell is the operator of PEL 0039 that covers round 12,000 sq km in Namibian deep offshore and has QatarEnergy (45%) and NAMCOR (10%) as companions. The Namibian discoveries could include recoverable reserves of round 6.5 billion barrels of oil equal, based on the analysis agency Wood Mackenzie.
“The shareholding as quoted by you is appropriate. However, there are contracts in place because the business value determinations of the wells are but to happen. The undertaking remains to be at exploratory stage,” mentioned a National Petroleum Corporation of Namibia spokesperson in an emailed response.
This comes towards the backdrop of a pointy output reduce by the Organization of the Petroleum Exporting Countries (Opec) Plus of two million barrels per day amid document excessive costs of petroleum merchandise in India and plans of a US-led international coalition to impose a worth cap on Russian oil that has sparked a Russian menace to chop oil provides to any nation that turns into a celebration to the worth cap plan.
India is averse to be a part of the plan, Mint reported earlier.
A Shell spokesperson mentioned, “Results from our exploration wells are encouraging, establishing the presence of a working petroleum system with mild oil. We’ll proceed evaluating the info and conduct additional exploration exercise to find out the extent of the system and the way a lot of the hydrocarbons could be recovered. We look ahead to continued shut collaboration with our companions NAMCOR, QatarEnergy an the federal government of Namibia.”
India is a key Asian refining hub, with an installed capacity of more than 249.36 million tonnes per annum (mtpa) through 23 refineries. It has 23 refineries and plans to grow its refining capacity to 400 mtpa by 2025.