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10
April 2018
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Oil producers (The Total Investment & Insurance
Solutions)
India is aiming to drive harder bargains with global oil producers,
including Saudi Arabia, during bilateral meetings at a conference of energy
ministers this week, officials said, leveraging its strength as the world's
third-biggest crude importer.
Key producers from the Organization of the Petroleum Exporting Countries
(OPEC), threatened by the rising output from new and non-OPEC countries, are
trying to secure a foothold in India where refining capacity is set to surge to
8 million barrels per day (bpd) by 2030 from 5 million bpd.
An official from India's oil ministry and two officials from the
country's state-run energy firms said they are hoping to advance talks with
Saudi Arabia and Nigeria for crude supplies at the meeting of the International
Energy Forum that India is co-hosting with China and South Korea this week.
"The world recognises the size of India‘s market, its appetite. We
want suppliers to look at India more favourably than in the past. We want the
agreements to be more transparent and fair," Indian Oil Minister
Dharmendra Pradhan told Reuters on Tuesday. The Total Investment & Insurance Solutions
Such demands reflect a new confidence in India as a driver of global
energy growth and are a far cry from earlier summits when oil ministry
officials and the executives of state oil firms would plead for more crude oil
supplies, said Sri Paravaikkarasu, head of East of Suez Oil at consultancy FGE.
"Now Indian officials go to these summits and ask producers for
incentives. It's a big change," she said. The Total Investment & Insurance Solutions
Some concessions are already coming.
Iran has offered to increase a discount on freight prices to Indian
state refiners to double its sales to the companies, which control about
one-third of India's refining capacity.
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Saudi Aramco raised the credit limit for some Indian refiners last year
so that they could lift more crude without providing explicit financial
guarantees.
India's footprint in global energy markets will increase
"materially" from 2018 to 2040, making it the largest growth market
for global energy, BP Plc said in its energy outlook report in February.
Indian state oil executives say there is now a more balanced
relationship with suppliers. The Total
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"Our ties with key oil suppliers are moving towards collaboration
level rather than just buyer-seller," said M. K. Surana, chairman of
Hindustan Petroleum Corp.
India last year began buying oil from the United States to cut its
dependence on the Middle East, whose share of overall imports fell to 64.1
percent in the fiscal year of 2016/17 from about 80 percent in the 2007/08
fiscal year, government data showed. The
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"America as an alternate source can give us better
negotiating power with the Middle East," R. Ramachandran, the head of
refineries for Bharat Petroleum Corp Ltd, said.The
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