Puri allays fears of short supplies, says crude import from Russia miniscule

He also stated that even now the total amount of crude oil supply contracted will be three days supply from Russia to India and that also spreads over next three to four months.
Union Petroleum minister Hardeep Singh Puri (File Photo | PTI)
Union Petroleum minister Hardeep Singh Puri (File Photo | PTI)

NEW DELHI: Oil minister Hardeep Singh Puri on Monday allayed fears of short supply of crude oil amid the Russia-Ukraine conflict and said that crude oil imports from Russia are miniscule at just 0.2 per cent of total such imports till January this fiscal.

"About the increased oil import concerns. We require total of five million barrels per day. Sixty per cent of it comes from Gulf. We have imported from Russia, just 0.419 million metric tonnes. That is 0.2 per cent of total requirement (during April-January this fiscal)," Puri said in the Rajya Sabha while replying to a supplementary to a starred question.

"We are monitoring the situation. As far as oil imports are concerned from Russia, contrary to what played up in media, it is miniscule," the minister said.

According to the written reply tabled in the House, in financial year 2020-21, India imported 85 per cent of its crude oil requirements and 54 per cent of its natural gas requirement.

According to Petroleum Planning & Analysis Cell (PPAC), India's major sources of crude oil imports are Iraq, Saudi Arabia, the UAE, Nigeria and the US.

Indian Oil & Gas Public Sector Undertakings had imported approximately less than 1 per cent of its total crude oil import from Russia in the year 2021-2022 (till January).

India imported only 0.419 million metric tonnes (mmt) of crude oil from Russia, as compared to overall crude oil imports of 175.900 mmt (in April-January this fiscal).

In the current situation of high volatility in global energy markets, the Government of India is closely monitoring the situation. No adverse impact on hydrocarbon energy agreements is currently foreseen, the minister stated in the written reply.

He also stated that even now the total amount (of crude oil supply) contracted will be three days supply from Russia to India and that also spreads over next three to four months.

Replying to another supplementary, he said, "Our oil companies have invested about USD 16 billion in Russia (since Vajpayee government's term). Some of those investments are very profitable."

About plans of certain companies to exit from Russia, he told the House, "The discussion on whether western oil entities are exiting from some of these (oil and gas) facilities (in Russia). We are in discussion with some of these western oil entities."

"The facts on the ground vary. There is nuanced approach. Some have indicated intent to exit. The others say that they will not make fresh investments. We are in discussion with highest levels of those companies. If those companies were to exit finally. We will certainly look at all those economic opportunities available. In 2020-21, India imported 14 mmt of crude from the US. This represented 7.3 per cent of our requirement as against less than 1 per cent from the Russian Federation."

"In the current (fiscal year) the imports from the US are likely to grow to 16.8 mmt or a value of about USD 10 billion of crude oil. If I add the amount of gas which we are importing and coal, I think the figure comes to USD 13.5 billion of imports from the US. There is a robust relationship and I see it continue for some time," he added.

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