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New Delhi, March 27: Nigeria has emerged as the second largest supplier of oil to India, next only to Saudi Arabia. However, Gulf nations as a block continue to be the most important source of the country?s crude imports.
According to official statistics, between April and December this year, the national oil companies have bought 17 million tonnes of crude from Saudi Arabia and close to 11 million tonnes from Nigeria.
Nigeria assumes significance as it provides low sulphur sweet crude, which has to be mixed with the cheaper high-sulphur crude from the Gulf before it is processed by the Indian oil majors.
The bonny light variety of Nigerian oil is the same quality as the sweet crude from the western offshore oilfields that contribute the bulk of the indigenous oil output.
India?s imports of crude from the US-controlled Iraq have shown a two-fold increase over the previous year to touch the 6.5 million tonne mark during the April to December period this year. The total quantity of imports from the war-torn country in 2003-04 was 3.9 million tonnes.
Iraq has jumped to the fourth spot close on the heels of Iran from where 7.3 million tonnes have been imported during this period. India sources its supplies from around nine Gulf nations, which account for over 65 per cent of its total crude imports.
Sources said an attempt has been made to diversify the sources but high shipping costs are a major hurdle. The Gulf is still the best bet because of its geographical proximity, which results in low transport costs.
Among other countries outside the Gulf, Malaysia and Angola have assumed some significance with over 2 million tonnes of crude being imported from each of these countries during the first nine months of the current financial year.
Smaller quantities of crude are also being imported from Latin American countries such as Brazil, Mexico and Ecuador. Russia, Egypt and Libya are also supplying small quantities of crude.
While close to 1 million tonnes of crude was brought into the country as part of ONGC-Videsh?s share in the Greater Nile oilfield of Sudan, these imports have been slashed this year.
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