IOC Buys Colombian Crude to Cut Russia Reliance
ECONOMY & POLICY

IOC Buys Colombian Crude to Cut Russia Reliance

Indian Oil Corporation (IOC) has purchased its first shipment of Colombian crude oil under an optional supply agreement with state-owned oil company Ecopetrol, people familiar with the matter said. The move comes as India’s largest refiner seeks to diversify crude sourcing away from Russia.

Indian refiners are increasingly scouting for alternative crude supplies as tighter sanctions by the United States and the European Union on Russian producers and shipping vessels disrupt imports. According to data from ship-tracking firm Kpler, India’s Russian oil imports are expected to fall to a three-year low of about 1.2 million barrels per day in December, down from 1.84 million barrels per day in November.

Sources said IOC has purchased around 2 million barrels of Colombian Castilla crude, scheduled for delivery in late February. The refiner has an optional contract to buy up to 12 million barrels, equivalent to six very large crude carriers, with each VLCC capable of carrying about 2 million barrels of oil.

The supply agreement was originally signed in late 2021 and has been renewed annually since. IOC and Ecopetrol did not respond to requests for comment.

IOC currently meets most of its crude requirements from Russia and the Middle East and has rarely sourced oil from South America, despite holding optional purchase contracts with suppliers in Mexico, Brazil and Colombia. Industry sources said South American crude has often struggled to compete on price with Russian and Middle Eastern grades, as deal terms, including pricing, must be mutually acceptable to both buyer and seller.

Indian Oil Corporation (IOC) has purchased its first shipment of Colombian crude oil under an optional supply agreement with state-owned oil company Ecopetrol, people familiar with the matter said. The move comes as India’s largest refiner seeks to diversify crude sourcing away from Russia. Indian refiners are increasingly scouting for alternative crude supplies as tighter sanctions by the United States and the European Union on Russian producers and shipping vessels disrupt imports. According to data from ship-tracking firm Kpler, India’s Russian oil imports are expected to fall to a three-year low of about 1.2 million barrels per day in December, down from 1.84 million barrels per day in November. Sources said IOC has purchased around 2 million barrels of Colombian Castilla crude, scheduled for delivery in late February. The refiner has an optional contract to buy up to 12 million barrels, equivalent to six very large crude carriers, with each VLCC capable of carrying about 2 million barrels of oil. The supply agreement was originally signed in late 2021 and has been renewed annually since. IOC and Ecopetrol did not respond to requests for comment. IOC currently meets most of its crude requirements from Russia and the Middle East and has rarely sourced oil from South America, despite holding optional purchase contracts with suppliers in Mexico, Brazil and Colombia. Industry sources said South American crude has often struggled to compete on price with Russian and Middle Eastern grades, as deal terms, including pricing, must be mutually acceptable to both buyer and seller.

Related Stories

Gold Stories

Next Story
Products

Koemmerling opens Navi Mumbai experience centre

Koemmerling, a brand of the profine Group, has expanded its presence in the Mumbai metropolitan region with the opening of a new experience centre in Navi Mumbai and launched its Allure S46 minimal sliding door system for the Indian market.Located in CBD Belapur, the facility was inaugurated by Peter Mrosik, Owner and CEO, profine Group, along with Farid Khan, Chairman and Managing Director, profine India, and Kamal Bajaj, CEO, profine India.The company said the new centre will showcase its portfolio of uPVC and aluminium window and door systems to architects, developers and homeowners.The ina..

Next Story
Products

India's waterproofing market nears Rs 150 bn milestone

India's waterproofing industry is approaching a market size of Rs 150 billion and is expected to surpass the $2 billion milestone, according to speakers at the 2nd India International Waterproofers Conference & Expo 2026 organised by the Waterproofers Association of India (WAI) in New Delhi.The two-day event brought together more than 20 speakers, 55 international delegates and 53 exhibition booths, with discussions focusing on climate-resilient construction, advanced waterproofing technologies and international collaboration.Inaugurating the event, Durga Shanker Mishra, former Secretary, ..

Next Story
Real Estate

Dilip Buildcon Q1 FY27 Revenue at Rs 23.78 billion

Dilip Buildcon Limited reported consolidated revenue from operations of Rs 2,378 crore in Q1 FY27, along with EBITDA of Rs 429 crore and profit after tax of Rs 128 crore.Consolidated EBITDA margin stood at 18.1%, improving from 17.1% in Q4 FY26. On a standalone basis, revenue from operations was Rs 1,930 crore, EBITDA stood at Rs 199 crore and PAT was Rs 39 crore, with an EBITDA margin of 10.3%.The company’s order book stood at Rs 27,691 crore as of 30 June 2026, compared with Rs 28,830 crore as of 31 March 2026. Roads and highways accounted for 17.1% of the order book, irrigation and water ..

Advertisement

Subscribe to Our Newsletter

Get daily newsletters around different themes from Construction world.

STAY CONNECTED

Advertisement