India is now the single largest importer of Nigeria’s crude, surpassing the US and accounting for around 17 per cent of exports from the West African country, according to analysis by energy research firm Platts
Richard Swann, London-based global editorial director of Oil News, a Platts publication, said recently that the emergence of India as the largest consumer of Nigerian crude occurred rapidly over the past year, more so over the past six months.
“India’s demand for crude oil is constantly rising and it makes economic sense to ship it from Africa due to the geographical proximity,” Swann added.
The growth of US domestic light shale oil production resulted in a 63 per cent drop in the country’s dependence on import of Nigeria sweet (pure and more expensive) crude over the past five years. Thus, US has become less dependent on imported crude.
The demand fell from 1.084mn bpd in 2007 to 405,000 bpd in 2012.
On the other hand, India is expected to import at least 13 cargoes, or 17 per cent of the 75 per cent scheduled for export, from Nigeria by end of this month.
In March and April, India imported six and seven cargos, respectively, each containing one million barrels of crude oil.
Indian state-run companies such as Indian Oil Corporation Limited, Hindustan Petroleum Corporation Limited (HPCL), Bharat Petroleum Corporation Limited and Mangalore Refinery and Petrochemicals Limited figure among significant buyers of crude from Nigeria.
BK Namdeo, executive director of international trade and supplies at HPCL, “Nigeria is one of the largest producers of low sulphur crude and India needs this kind of crude.
“The Brent-Dubai differential has become very less in the last five to six months and there are environmental concerns over sulphur dioxide emission, which makes Nigerian light crude attractive.”
