India to buy more crude oil from Nigeria
India is set to import more crude oil from Nigeria according to the Indian Oil Minister, Dharmendra Pradhan.
“Nigeria has now agreed to increase the term contract from 1.7 million tonnes per annum to three million tonnes in 2016,”
Mr. Pradhan reportedly stated on the sidelines of the fourth India-Africa Hydrocarbon Summit in New Delhi.
Nigeria is the third-largest contributor to India’s oil imports, accounting for 11.59 million tonnes (MT) in the first half of this financial year, behind Saudi Arabia (19.56 MT) and Iraq (17.01 MT).
The benefit of a term contract is that not only does it assure a certain quantity to be supplied but also ensures a stable price unlike oil bought from spot markets whose price can fluctuate drastically. Apart from Nigeria, Sudan also wants to increase its engagement with India.
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