Brazil, the top South American oil producer, can help meet India’s crude oil demand and, in turn, import more diesel from New Delhi, the world’s fourth-largest refiner, said Brazilian ambassador to India Kenneth Félix Haczynski da Nóbrega in an interview.
He also talked about a possible collaboration between Indian and Brazilian oil refining companies to set up a refinery in Brazil, which imports petroleum products, especially diesel.
His remarks come as New Delhi looks to diversify energy supplies and secure equity oil and gas from Brazil, the world’s seventh-largest crude producer and exporter, amid the US-Israel-Iran war that has prompted energy-importing nations such as India to shore up supplies.
As part of this effort, India’s state-run Bharat Petroleum Corp. Ltd (BPCL) signed a long-term contract to procure 12 million barrels of crude in 2026-27 from Petrobras in January this year, renewing a previous contract signed in 2025.
While Brazil is largely self-sufficient in crude oil production, it has one “vulnerability”, according to Nóbrega. “One vulnerability is that we are self-sufficient in crude oil production, but we are not self-sufficient in refined oil,” he said, adding that diesel is required for a bulk of the freight transport in the country by road and rail.
“India also could install refineries in Brazil because you are one of the largest countries in terms of oil refining,” he said, noting that one of India’s biggest exports to the largest country in South America is refined oils, including diesel.
India has a refining capacity of 258 million tonnes per year and has helped countries such as Nigeria and Mongolia develop refineries. Recently, US President Donald Trump announced that Reliance Industries Ltd, which owns and operates the world's largest integrated refining facility in Jamnagar, Gujarat, would tie up with US entity America First to develop a refinery in the US.
A symbiotic relationship
Nóbrega said India-Brazil relations have been forged on a basis of complementarity, and ongoing geopolitical tensions will only provide tailwinds to these relations as nations seek reliable, trusted partners.
"Brazilian crude is heavy and sour, and Indian refineries have sufficient expertise to process it. Given the nature of this crude, they are also cheaper compared to other variants. So, importing more Brazilian crude would be beneficial for India. Secondly, Brazil would also be a good market for diesel produced in India, as we already are a major exporter of petroleum products," said Gaurav Moda, partner and energy sector leader, EY-Parthenon India.
Indian refiners are well placed to develop refineries in the South American country, he added.
He said, another key area where India can partner with Brazil is the exploration of offshore and deepwater blocks. Brazil has several such blocks, while India is looking to develop hydrocarbon production from offshore and deepwater blocks, and Indian exploration and production lacks expertise in this area.
India-Brazil bilateral trade reached $15.21 billion in 2025, according to the ministry of external affairs. According to UN Comtrade data, India imported $1.94 billion worth of crude oil from Brazil and exported about $800 million worth of refined petroleum products to the country in 2024.
New Delhi is also involved in Brazil’s exploration and production space, where ONGC Videsh Ltd, the overseas arm of state-run Oil and Natural Gas Corp. Ltd (ONGC), and Bharat PetroResources Ltd have jointly invested about $3.5 billion in offshore oil assets.
During Brazilian President Luiz Inácio Lula da Silva’s visit to India in February 2026, the two countries signed multiple memorandums of understanding (MoUs) to enhance cooperation in critical minerals, pharmaceutical regulation, micro, small, and medium enterprises (MSMEs), and postal services.
Before that, Mint reported on 27 January that Gautam Adani-led Adani Group has entered into a partnership with Brazilian aircraft manufacturer Embraer S.A. to establish a small-jet manufacturing facility in India.
Foreign direct investment (FDI) flows from India to Brazil have also had a positive impact on bilateral trade, Nóbrega said. “And it's expected to have an impact on trade in a more sustainable manner because, for example, when Indian automotive companies are increasing their investments in Brazil, that increases the export, the flow of exports of auto parts from India to Brazil in the same way that as Embraer localizes, their production here will also have an increased export of aerospace parts,” he said.