Indian Oil Corporation (IOC), India’s largest state-owned refiner, has procured 1 million barrels of Nigeria’s Agbami crude for delivery in September 2025. The deal, facilitated by trading firm Trafigura via an ICE chat tender, comes as part of IOC’s diversification strategy amid geopolitical tensions and increased scrutiny of Russian oil imports.Reuters
Strategic Context
- Supply Diversification: This purchase comes alongside previous buys of 7 million barrels from the U.S., Canada, and the Middle East, signaling IOC’s intent to reduce reliance on Russian crude amid escalating U.S. criticism.
- Broader African Engagement: Earlier in 2025, IOC also acquired spot crude from African sources—including Nigeria’s Agbami and Akpo, Gabon’s Rabi Light, and Angola’s Nemba—to counter supply disruptions caused by U.S. sanctions on Russian oil.
Why It Matters
| Highlights | Details |
|---|---|
| Procurement Scale | 1 million barrels of Agbami crude for September delivery |
| Strategic Pivot | Reflects diversification away from discount Russian crude supply |
| African Sourcing Growth | Reinforces IOC’s increasing reliance on West African grades |
| Geopolitical Relevance | Acts as a counterbalance to mounting U.S. pressure over Russian oil ties |
This move underscores IOC’s renewed focus on building resilient supply chains by deepening ties with African oil producers, offering a strategic hedge amid evolving global energy dynamics.
