India looks to Mexico for broadening its crude basket
In a bid to broaden its import basket and cut its reliance on crude from the Middle East, India plans to strengthen its ties with Mexico by increasing crude imports from the Latin American nation.
To that end, ONGC’s foreign arm ONGC Videsh Ltd has decided to open a full office in Mexico.
Petroleum Minister Dharmendra Pradhan, who is on a Latin American tour, held talks with the Mexican Minister of Energy Pedro Joaquin Caldwell on the Mexico leg of the tour. He also met with Minister of Economy Ildefonso Guajardo Villareal and the CEO of PEMEX Emilio Lozoya Austin. Accompanying him on the delegation are Indian Oil Chairman B Ashok, ONGC Videsh Managing Director N K Verma, Cairn India Chief Executive Mayank Ashar, Adani Gas Chief Executive Rajeev Sharma, Reliance Industries’ President-Strategy Atul Laul and Larson & Toubro’s Deputy General Manager Manish Mishra.
“India is trying to diversify its import sources of energy and more than 20 per cent of crude oil import is presently sourced from Latin America,” said Pradhan during the talks. “Mexico figures high on the priority of India to enhance bilateral energy ties,” he added.
Indian companies, he said, were willing to participate in exploration and production in Mexico, including in deep-water and unconventional resources. India can help Mexico upgrade its refining sector, said the minister.
Mexico opened its energy sector for private and foreign participation last year. Currently, IOC, Reliance Industries and Essar buy around six million tonnes of crude oil a year from Mexico.
“The energy reforms in Mexico provide a window to transform the relationship from a buyer-seller one to that of an energy partnership,” the minister said.
Pradhan asked the Mexicans to consider doing business with Indian engineering, procurement and construction and infrastructure companies. He said India wanted a long-term partnership with Mexico in the hydrocarbon sector.
India imports 78 per cent of its crude oil and is trying to diversify its sources. Mexico and Colombia have brought in phased deregulation and an independent regulatory framework for their oil and gas sector. Their location gives them a easy access to both the Pacific and Atlantic markets.
