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Business News/ News / India in talks with Venezuela, Guyana for crude oil amid OPEC+ production cuts
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India in talks with Venezuela, Guyana for crude oil amid OPEC+ production cuts

The country will comfortably navigate through any market volatility and supply crunch in crude oil, says minister

Hardeep Singh Puri, Union minister for petroleum and natural gas, on Monday distributed letters of intent to successful bidders of the 12th city gas distribution bidding round. (PTI)Premium
Hardeep Singh Puri, Union minister for petroleum and natural gas, on Monday distributed letters of intent to successful bidders of the 12th city gas distribution bidding round. (PTI)

NEW DELHI : India is in talks with several countries including Guyana, Suriname and Namibia to source crude oil at a time when the Organization of the Petroleum Exporting Countries and its allies have decided to extend their production cuts.

India will also source oil from Venezuela in lieu of stuck dividends worth $600 million, Union minister for petroleum and natural gas, Hardeep Singh Puri, said on Monday. 

The country will comfortably navigate through any market volatility and supply crunch arising as a result of the OPEC cuts, he added.

India is the world’s third-largest importer of crude. The country imports about 85% of its energy requirements and any supply crunch and eventual rise in global oil prices as a result of OPEC’s decision would increase India’s import bill.

The OPEC+ grouping, which includes Russia, has decided to extend its voluntary crude supply cuts until the end of June. Saudi Arabia will extend its voluntary crude output cut of 1 million barrels per day, according to media reports.

“Whatever decision OPEC+ takes it is their sovereign decision. I speak with confidence as a representative of a country that we will navigate through this," Puri said.

The minister spoke at an event where he distributed letters of intent to successful bidders of the 12th city gas distribution (CGD) bidding round for their respective geographical areas.

Puri said an investment of about 41,000 crore is expected for the expansion of the CGD network under the 12th round.

In the latest CGD round, eight geographical areas were offered covering six northeastern states as well as Jammu and Kashmir, and Ladakh.

“Subsequent to this round, authorization for development of City Gas Distribution Networks in the entire country (except islands) shall be awarded," Puri said.

The minister further said that more than 33,753 km of natural gas trunk pipelines had been authorized in India, of which about 24,623 km of pipeline are currently operational. 

He also said that 12.1 million domestic piped natural gas connections and 6,258 compressed natural gas stations had been established in India so far.

Anil Kumar Jain, chairperson of the Petroleum and Natural Gas Regulatory Board, said the regulator is focused on creating a vibrant and sustainable gas infrastructure across the country.

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Published: 04 Mar 2024, 08:35 PM IST
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