India is looking to import oil from Brazil under a special long -term contract
India, the world’s third -largest oil importer and consumer, is looking to increase oil purchases from Brazil, oil minister Hardeep Singh Puri said on Thursday after a meeting with Brazilian Energy Minister Bento Albuquerque.
Currently India only imports a small portion of its oil imports from Brazil.
“We have stated to the honorable minister that we are ready to increase our crude oil from Brazil many times over,” Puri said, adding that Indian companies will also look to increase investment in the South American country.
Currently, Indian state -owned companies Bharat Petroleum Corp and Oil and Natural Gas Corp have made investments in Brazil’s oil and gas exploration sector.
India wants to import oil from Brazil under a “long -term special contract,” a government statement issued after the meeting said without commenting further.
Brazil, which increased its oil production by 10% to 3.3 million barrels a day, is poised to meet India’s oil demand, Albuquerque said.
India, which meets about 84% of its oil needs through imports, is looking at ways to reduce its import bills including increasing its use of biofuels.
Indian government -run fuel retailers are increasing their ethanol storage capacity by 51% as the country aims to double its biofuel blend with gasoline to 20% by 2025.
Puri said India and Brazil were cooperating in the fields of biofuels and ethanol.
Brazilian Sugarcane Industry Association, Unica has signed a memorandum of understanding with the Indian Automobile Manufacturers Association to work in the field of ethanol and flexible fuel technology.
“We believe that India and Brazil can unite to help other districts that want to increase the use of ethanol as a vehicle fuel and develop flexible fuel technologies to reduce its carbon footprint,” said Evandro Gussi, chief executive of Unica.
India imports most of its oil needs from the Middle East and ships about 9% from Latin America by 2021.
India has recently increased its purchases of Russian crude oil, available at cheaper rates after several companies and countries avoided Russian oil following Western sanctions on Moscow because of its aggression on Ukraine.
(Reporting by Nidhi Verma; Editing by Alexandra Hudson)
(This story has not been edited by NDTV staff and is automatically generated from a syndicated feed.)
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