India turns to Venezuela, Guyana after OPEC+ extends production cuts
NEW DELHI : India is in talks with several countries including Guyana, Suriname and Namibia to source crude oil after the Organization of the Petroleum Exporting Countries and its allies decided to extend 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.
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