Mexico has emerged as the most important supplier of crude oil for India. In fact, India is the third biggest market of Mexican crude oil and there is a great potential for it to grow further. Its export to India in this commodity has always been rising however in terms of value it shows fluctuation because of international prices. Mexico is one of the top oil producers in the with its production at 110 mt.
According to the Indian ambassador to Mexcio, Mukhtesh Pardeshi, “Mexico has become a reliable partner in our energy security. The country has exported $ 3.73 billion of crude oil to India with an increase of 36% over the previous year. In 2010, Mexico exported 8.36 million barrels, which rose continuously to 50.89 million barrels in 2017 to India.”
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“Unfortunately, the Mexican export basket is not very diversified and 75% of the basket is occupied by crude oil,” he adds.
Sources have also confirmed to Financial Express Online that with the political uncertainty continuing in Venezuela and Indian companies shutting down its crude imports from that country, to meet its growing energy needs, India has started looking at expanding its imports from other countries in the South American region. The Indian private companies have started seeking other markets for buying crude.
According to diplomatic sources after the India-Mexico bilateral trade touch an all time high of $10 billion for the first time ever, both sides are keen on expanding their relations in the energy sector as well as other important minerals and metals.
Earlier this year, at the Petrotech 2019, Rocio Nahle Garcia, Minister of Energy, Mexico while highlighting the vision of her government towards an affordable energy, said that there are plans to bring in reforms which would privatize energy production and ensure clean energy.
Garcia had also met with her Indian counterpart Minister of Petroleum and Natural Gas, Dharmendra Pradhan and the two sides had discussed the possibility of the Indian companies participating various energy related projects in that country.
Reportedly there has been decline in production at the state owned oil company Pemex in Mexico, with new reforms in place Indian companies are expected to participate in production, exploration and extraction.