In a strategic move to broaden its energy portfolio, India is significantly enhancing its collaboration with African nations for oil and gas procurement. This shift comes as India's crude oil imports from Russia plummeted to their lowest level in two years by February 2025. To offset this reduction, India has dramatically boosted its African crude purchases, with February imports jumping to 330,000 barrels per day (bpd) – a remarkable increase from January's 143,000 bpd.
Strengthening Trade Relationships
The Indian Oil Corporation (IOC), a premier refining entity, is preparing to accept substantial crude shipments from Africa this month. These include 2 million barrels of Nigeria's Okwuibome crude, supplemented by 1 million barrels each of Nigeria's Akpo and Angola's Mostarda varieties. This expanding trade relationship underscores Africa's growing significance in international energy circles, particularly within G20 discussions, where the continent is now recognized as a crucial contributor to global energy stability.
Substantial Capital Investments
India's African strategy encompasses more than just trade, featuring significant financial commitments to energy initiatives. Recently, ONGC authorized a $175 million financing package for Mozambique's Area 1 Project, where a consortium of Indian government-backed companies – ONGC Videsh, Bharat Petroleum Corporation Ltd. (BPCL), and Oil India Ltd – collectively control a 30% interest. This venture, boasting an estimated 75 trillion cubic feet of extractable natural gas reserves, incorporates several major gas fields including Windjammer, Barquentine, and Atum.
Demonstrating further dedication to Africa's energy sector, BPCL revealed in December 2024 its strategy to channel approximately $32.9 billion into exploration and production activities, primarily targeting assets in Mozambique and Brazil. These substantial investments highlight India's determination to establish a more prominent presence in Africa's energy landscape while contributing to the region's resource development.
Nigeria: A Strategic Energy Collaborator
Nigeria has emerged as a particularly important partner in India's African energy strategy. Building on existing smaller-scale refining operations, India committed $14 billion in 2023 toward various initiatives, including a chemical and fertilizer production facility. During the CERAWeek energy conference in Houston, ONGC leadership reaffirmed India's commitment to expanding its energy investments across Africa, the Middle East, and Latin American markets.
Recognizing this growing interest, Nigeria's National Petroleum Corporation has actively courted Indian investors, highlighting opportunities in the country's petroleum and natural gas sectors, with special emphasis on refining infrastructure and gas development. As Nigeria implements progressive policy changes aimed at increasing domestic refining capacity and decreasing dependence on imported refined products, it presents compelling opportunities for foreign investment.
This strategic reorientation toward Africa forms part of India's comprehensive plan to ensure energy supply diversity while building enduring economic relationships across the continent.