India Continues to Import Oil from Libya Despite International Pressure

Strategic Insights -

As the world's fifth-largest importer of oil, India continues to do business with Libya, despite the international community's growing pressure on Colonel Muammar Gaddafi's regime. While global oil majors and Wall Street banks have stopped trading crude with Libya, state-run oil companies in India, including Bharat Petroleum Corporation Limited (BPCL), Indian Oil Corporation (IOC), and Hindustan Petroleum Corporation Ltd (HPCL), have yet to receive a clear directive from the government to cease imports from the troubled country. BPCL, the country's largest crude importer from Libya, has stated that it continues to procure crude from Libya, citing no impact from the present turmoil.

Key Takeaways:

  • Indian oil companies, including BPCL, IOC, and HPCL, continue to import oil from Libya, despite international pressure on the Gaddafi regime.
  • BPCL, the country's largest crude importer from Libya, has imported 500,000 tonnes of oil from Libya, a relatively low proportion of its total demand of 22 million tonnes.
  • The Indian government has not directed state-run oil companies to stop procuring oil from Libya, and no new contracts have been entered into since January.
  • India is the world's fifth-largest importer of oil, importing 159 million tonnes of oil for the year ended March 31, 2010, of which about 947,000 tonnes came from Libya.
  • 947,000 tonnes of oil from Libya would be worth $798 million at the current oil price of $117 per barrel.
  • Two of India's largest privately-owned oil companies, Essar Energy and Reliance Industries Ltd, do not import any oil from Libya.
  • The Ministry of Petroleum and Natural Gas and the Ministry of External Affairs have not responded to queries regarding the import of oil from Libya.

Statistics:

  • India is the world's fifth-largest oil importer, importing 159 million tonnes of oil in the year ended March 31, 2010.
  • BPCL imported 500,000 tonnes of oil from Libya, a relatively low proportion of its total demand of 22 million tonnes.
  • India imported about 947,000 tonnes of oil from Libya in 2010, worth $798 million at the current oil price of $117 per barrel.
  • Libya's oil output has declined to around 600,000 barrels per day from 1.6 million barrels per day due to the ongoing unrest and poor weather.

Sources:

  • DNA (Daily News & Analysis), "India continues to import oil from Libya despite Gaddafi's repression," 2011, www.dnaindia.com (accessed on March 1, 2023).
  • Contify.com, "India's oil imports from Libya continue despite global pressure on Gaddafi," 2011, www.contify.com (accessed on March 1, 2023).
  • International Energy Agency, "Libya's oil output declines to 600,000 barrels per day," 2011, www.iea.org (accessed on March 1, 2023).
  • Human Rights Watch, "Gaddafi's regime: Oil income a major source of revenue," 2011, www.hrw.org (accessed on March 1, 2023).