To meet its growing energy needs, India is keen to increase its crude imports from the South American nation Brazil. In fact, when the leaders of India and Brazil meet in New Delhi next month this will be on the agenda of talks.
Due to the US sanctions on Venezuela and Iran and the attack on the Saudi Oil Refinery, Indian companies have been exploring different markets including options for increasing its imports from Brazil for country’s energy security.
Venezuela had been the fourth-largest oil supplier to India after Saudi Arabia, Iraq and Iran. In 2017-18 the South American country had supplied around 10 million tonnes of crude to India.
Between 2014-15 India was importing Brazilian crude oil in good volume, but this dropped by almost 50 % before picking up again. In an interaction Andre Aranha Correa da Lago, ambassador of Brazil to India said that “The talks between President Jair Bolsonaro and Prime Minister Narendra Modi will be focusing on various sectors including strengthening all forms of energy — Bio-Energy, Oil and Gas and Mineral Resources, as well as helping in the production of ethanol and opening up of the Indian market for bio-fuel.”
Brazil holds number 10th position as the largest producer with 150 million tonnes (mt) oil globally followed by Mexico on the 11th position with its production at 110 mt. In fact, under the new leadership in Brazil, there are major reforms being undertaken in the energy sector which would help to increase not only production but also oil exports.
Crude Oil Production in Brazil increased to 2989 BBL/D/1K (Unit : BARREL/Day/1000) in the month of August 2019, The Average crude oil production recorded 2618.7 BBL/D/1K between January 2018 – August 2019, reaching an all-time high of 2989 BBL/D/1K in August of 2019 and record low in October 2018 at 2486 BBL/D/1K.
Info-graph below shows Crude oil production in Brazil.
The info-graph shows the monthly Brazilian petroleum crude oil import in India from January 2018 to August 2019. It clearly shows that in the month of August 2018, India has imported $217.76 Million crude oil from Brazil which was recorded a highest value in the year 2018-20.
In the last five years crude oil import from Brazil, India has imported the $ 2.511 Billion crude oil in 2014-15, which was the highest. In 2015-16 the crude oil import from that country suddenly fell by 50.62% and recorded $ 1.240 Billion.
The import of crude oil trend went upwards when India imported $ 1.59644 Billion crude oil from Brazil in 2018-19, where as in 2017-18 India imported $ 1.53647 Billion crude oil from showing 3.9% increase in imports.
Source: Financial Express