India's state-run Bharat Petroleum Corp (BPCL) is turning to Middle Eastern crude to offset declining Russian oil supplies, said Chief Financial Officer Vetsa Ramakrishna Gupta on Monday. The company faces a shortfall of two to three cargoes per month of Russian crude, which typically accounts for 35 to 37 per cent of its refinery throughput. BPCL recently purchased Omani oil and is exploring alternatives such as West Texas Intermediate (WTI) if Russian supply disruptions persist. India, a top buyer of discounted Russian oil since 2022, is grappling with reduced availability as Moscow prioritises domestic demand and output quotas under its OPEC+ agreement. Meanwhile, Rosneft's long-term deal with Reliance for 500,000 barrels per day (bpd) starting in 2025 further constrains supply. BPCL sources 53 per cent of its crude via term deals and is diversifying further, recently acquiring Argentinian oil and planning to secure 10,000 bpd from Qatar in 2025/26. The company is also investing ₹1.7 trillion ($19.94 billion) by 2028/29, with ₹320 billion in loans already secured for its Bina refinery expansion. Future plans include $250 billion for oil and gas projects in Mozambique and Brazil, with external borrowing anticipated in 2026/27. Gupta highlighted the need for US interest rate cuts to improve overseas financing conditions, noting BPCL's $2 billion in foreign debt. Attribution: Reuters Subediting: Y.Yasser
