Page 5 - AsianOil Week 08 2021

AsianOil SOUTH ASIA AsianOil

finalising a deal that would demerge its O2C The news also brings into focus Aramco’s
business into a subsidiary that will initially be involvement in a proposed $70bn, 1.2mn bpd
wholly owned by the parent. The new O2C sub- refinery and petrochemicals complex in India’s
sidiary will be include RIL’s refining and petro- western Maharashtra State alongside Abu Dhabi
chemicals assets, its bulk wholesale marketing National Oil Co. (ADNOC) and three New Del-
business, its fuel retail arm which comprises hi-owned oil companies.
a 51% stake in a joint venture with BP, and oil Progress on the project has been caught
trading subsidiaries in Singapore and the UK. up in delays acquiring land and Aramco
While the details of the spin-off are yet to be is reported to have expressed serious con-
concluded, RIL is expected to be valued at $75- cerns, though it has not yet spoken of plans
85bn including the company’s debt. to withdraw.™

India diversifies oil imports amid

growing frustration at OPEC+

POLICY INDIA’S frustration at its own dependence on production in February and March even as other
oil exports from OPEC+ is driving the country members failed to plug the gap.
to diversify its imports, to the extent the govern- Pradhan described the move on January 19
ment is even considering boosting shipments as a “contradiction” in talks with OPEC Secre-
from Iran and Venezuela. tary-General Mohammad Barkindo during
The South Asian giant imported 4.8mn the Atlantic Council. The minister said the pol-
barrels per day (bpd) of oil in January, up mar- icy was “creating confusion for the consuming
ginally from 4.75mn bpd in the same month of countries”, before adding that OPEC’s decision
2020. Imports from the Middle East accounted might encourage India and other buyers to
for about 61% of that figure, marking an eight- embrace alternative energy sources more readily
month low. India’s imports from the US and Two weeks later, during a February 4 address
Canada almost doubled month on month to to the S&P Global Platts South Asia Commodities
367,000 bpd and 142,000 bpd respectively, Virtual Forum, Pradhan warned that high oil prices
with the US becoming the Asian country’s would hamper the global economic recovery.
fourth-largest supplier. “Efforts at artificially distorting prices will
“Demand for gasoline in India recovered at a have a dampening effect on the fragile global
faster pace than other products and North Amer- economic recovery that is underway. While we
ican grades are gasoline-rich,” Refinitiv analyst do not favour too low prices, we also do not sup-
Ehsan Ul-Haq told Reuters on February 22. “Crude port high prices, which deny energy access to
from America was cheap compared to other pro- millions in India,” he said.
ducing regions in November, while Canadian oil is The situation, The Hindustan’s sources said,
sold at a deeper discount to Brent.” has left India mulling whether to seek diplomatic
The recovery in India’s fuel demand has, how- support from other major importers. One said:
ever, triggered a spike in local gasoline prices. “India can raise this matter at various forums
“The current crisis is artificially created by such as Quad, a ‘plurilateral’ platform involv-
oil producers. Diplomatic efforts are on to ease ing the US, Japan, India and Australia. With the
the supply situation,” an unnamed official told easing of tension at the border, New Delhi may
The Hindustan on February 22. The Indian also engage Beijing to have a common voice of
daily noted that retail gasoline and diesel prices world’s four-five major oil consumers. South
had climbed by INR3.63 ($0.05) per litre and Korea could also be an ally on this matter of
INR3.84 ($0.053) a litre respectively over a common interest.”
12-day window. If the diplomatic route fails, then New Delhi
The Indian government has previously may opt to import more oil from Iran and Vene-
expressed its dissatisfaction over Saudi Ara- zuela, regardless of the current suite of international
bia’s decision to cut supply in an effort to prop sanctions on their oil exports. One of the officials
up oil prices. added: “The import curbs were imposed under
Indian Minister of Petroleum and Natural pressure from the Trump government. Now, either
Gas Dharmendra Pradhan protested against the US will help to mitigate our energy crisis or we
Saudi’s decision to cut 1mn bpd of crude will act in the interest of our nation.”™

Week 08 25•February•2021 www. NEWSBASE .com P5