India is widening its crude oil sourcing, with Indian Oil Corporation set to receive around 2 million barrels of Ecuador’s Oriente crude toward the end of March, according to industry sources. The medium-heavy, sour-grade cargo was purchased through an international tender.
The deal marks a rare intake of South American crude for India, whose refiners have traditionally sourced most of their oil from Russia, the Middle East, and parts of West Africa. While Indian Oil maintains optional supply arrangements with Mexico, Brazil, and Colombia, South American grades have seldom featured in India’s import mix. Last month, however, the company purchased 2 million barrels of Colombia’s Castilla crude.
Ecuador’s Ambassador to India, Fernando Xavier Bucheli, confirmed that Indian Oil is receiving Ecuadorian crude and said the transaction reflects broader changes underway in global energy trade. “The purchase of Ecuadorian crude oil is taking place in an international context marked by the reconfiguration of global energy flows,” Bucheli told StratNewsGlobal.
Bucheli said sanctions imposed by the United States and the European Union on Russian producers and shipping companies have complicated imports of Russian oil, prompting Indian refiners to look elsewhere. He added that Ecuador sees India as a priority market, citing the country’s rising energy demand and its policy of diversifying crude supply sources.
“Within this evolving landscape, Ecuador positions itself as a competitive, reliable, and responsible energy partner,” he said, adding that the current shipment could pave the way for more stable supply arrangements in the medium term.
India has previously been among the top export destinations for Ecuadorian crude, though volumes have fluctuated. Oriente crude is Ecuador’s main export blend and is typically processed by refineries equipped to handle heavier, sour grades.
Indian oil companies have been under growing pressure to rebalance import portfolios since 2022, when India became the largest buyer of discounted Russian seaborne crude following Moscow’s invasion of Ukraine. Other refiners have already secured alternative supplies.
Bharat Petroleum Corporation has arranged shipments of Omani crude through Trafigura and Basrah Medium crude from Iraq, while several refiners, including Hindustan Petroleum, Mangalore Refinery and Petrochemicals, and HPCL-Mittal Energy Ltd, have stopped buying Russian crude altogether, according to industry sources.
The Ecuador cargo adds to a series of sourcing adjustments by Indian refiners as global supply conditions evolve.
