India’s oil import strategy is undergoing a visible recalibration as state-run Bharat Petroleum Corporation Ltd (BPCL) moves to deepen crude sourcing from non-Russian origins.
“BPCL will buy 12 million barrels of crude oil worth about $780 million from Brazil’s state-owned Petrobras in FY27, doubling the size of its FY26 contract,” the ministry of petroleum and natural gas said on Friday.
The term contract, which will be signed next week at India Energy Week (IEW) 2026, comes at a time when Indian refiners are redrafting their import strategies to offset a gradual reduction in Russian crude supplies amid tightening sanctions and rising compliance risks.
The deal gains significance against the backdrop of a volatile global oil market, with supplies from Russia slowing due to fresh US sanctions and recent geopolitical developments involving Venezuela.
Speaking to reporters here, Union petroleum and natural gas minister Hardeep Singh Puri said India has proactively diversified its crude import basket to navigate global uncertainty.
“The global oil market is going through a phase of volatility. India has responded by diversifying its sourcing to ensure energy security and supply stability,” he said.
Shift away from Russian barrels
Indian refiners, which sharply increased Russian crude intake following the Ukraine conflict, are now buying more oil from West Asian, African and South American producers to balance risk, freight economics and execution certainty.
BPCL’s expanded Petrobras contract reflects this shift, with Brazilian grades increasingly seen as a reliable alternative to Russian barrels.
The Petrobras deal is among several commercial agreements expected to be signed during the four-day India Energy Week 2026, beginning January 27, positioning the event as a platform for concrete business outcomes rather than just policy discussions.
Multiple energy pacts lined up
During the India Energy Week, state-run Numaligarh Refinery Ltd (NRL) is set to sign a preliminary agreement with TotalEnergies to develop a 200 kilo tonnes per annum sustainable aviation fuel (SAF) project at Paradip in Odisha, aligning with India’s push to scale up low-carbon fuels.
In addition, NRL and Oil India Ltd (OIL) will sign a preliminary deal with TotalEnergies to source liquefied natural gas (LNG) to meet their future fuel requirements.
Separately, Bharat PetroResources Ltd (BPRL), BPCL’s upstream arm, will enter into a memorandum of understanding with Shell to explore opportunities for acquiring stakes in oil and gas assets globally.
The event will also see other strategic agreements, including shipbuilding contracts involving ONGC, Japan’s Mitsui O.S.K. Lines, and Samsung Heavy Industries of South Korea, underscoring India’s expanding engagement across the global energy value chain.
High-level engagement, investment focus
Highlighting the broader significance of the event, Puri said IEW 2026 will host a series of high-level side events and ministerial roundtables, including the 9th Prime Minister’s Roundtable, where the Prime Minister will interact with global CEOs, Indian PSUs and private sector leaders.
Other key engagements will include the India-Arab Energy Dialogue, India-Japan Energy Roundtable, India-Iceland Roundtable on geothermal energy and CCUS, and dialogues with USIBC and USISPF to strengthen India–US energy trade and investment ties.