This move could offer an opportunity to diversify imports and reduce reliance on discounted Russian crude, but uncertainties cloud the Angolan opportunity

Indian oil refiners are setting their sights on Angolan crude following the African nation’s departure from Opec, according to industry sources.

This move could offer an opportunity to diversify imports and reduce reliance on discounted Russian crude, but uncertainties cloud the Angolan opportunity.

“Angola quit Opec earlier this year because its quota limits hindered the country’s plans to stabilise crude production above 1 million barrels a day,” reports said. While Angolan production has shown slight upticks recently, it remains below ambitions.

Despite Angolan officials’ promises, significant output increases have not materialised yet. Years of insufficient investment and exploration have hampered production, leading to a decline from a peak of 1.9 million barrels per day (bpd) in 2010.

Traditionally, Indian refiners have been major buyers of African oil, including Angolan crude.

However, this trend shifted due to the recent abundance of heavily discounted Russian oil.

The share of West African crude imports in India’s total import basket dropped to 4 per cent in 2023, from 13 per cent in 2019.

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