IEW 2026: India to pursue term crude, shipbuilding deals amid energy security, diversification push

India aims to finalize a new term crude deal, award shipbuilding contracts to Japanese and South Korean firms and collaborate with global oil majors for overseas upstream opportunities, leveraging India Energy Week to advance its twin goals of energy security and diversification, according to Petroleum Minister Hardeep Singh Puri and a government statement on Jan. 23.

In addition, collaborative agreements to set up sustainable aviation fuel plants as well as LNG sourcing will also figure as part of various engagements at the conference in the western city of Goa, scheduled to take place from Jan. 27 to Jan. 30.

"We will look to finalize a term contract for purchasing 12 million barrels of crude from Brazil worth $780 million," Puri told reporters, but did not mention the exact time frame for the contract. The statement added that an agreement to that effect is proposed to be signed between state-run Bharat Petroleum Corp Ltd. and Petrobas during the conference.

Indian imports of Brazilian crude jumped 82% year over year in 2025, rising to 77,000 b/d from 42,000 b/d in the previous year, according to data from S&P Global Commodities at Sea . This made the South American country as India's tenth-largest supplier in 2025.

CAS data shows that Indian Oil Corp. and Reliance Industries have been the main purchasers of Brazilian crude, with several medium-sweet grades, such as Lula/Tupi, Sepia and Atapu, making their way into India's crude import basket. The rise in purchases comes after visits by both Prime Minister Narendra Modi and Puri to Brazil, aimed at exploring opportunities to increase crude oil imports and expand collaboration on offshore deepwater and ultra-deepwater exploration and production projects.

Changing market environment

Puri said that the changing global geopolitics had made it extremely crucial to diversify its energy sourcing strategy.

"It's a rapidly changing global environment. Before I took over, crude oil was coming in from about 27 sources. Today, we are buying from about 41 supplying nations. More and more energy is coming to the market from the western hemisphere -- Brazil, Guyana, Canada, and the US," Puri said.

India imported 84,000 b/d of Canadian-origin crude oil, typically loaded from the US, in 2025, up 52% year-over-year, CAS data showed. The key imported grade is Cold Lake, with relatively smaller volumes of Access Western Blend and Western Canadian Select. Puri in November met Canada's Minister of International Trade, Maninder Sidhu, in New Delhi to discuss expanding bilateral hydrocarbon trade, which reached $226.45 million in fiscal year 2024-25 (April-March).

"When energy from Venezuela and Iran will come into the market, I really don't know, but I don't see overall supplies going down. Instead, more and more energy will come to the global market," Puri added.

India imported about 300,000 b/d of Venezuelan-origin crude oil in 2019, but volumes fell to 25 million barrels for the whole of 2024, according to CAS data. In 2025, a total of five VLCCs -- one per month -- discharged crude at the port of Sikka, with the last discharge occurring in May 2025. Prior to the imposition of sanctions, Reliance was a leading buyer of Venezuelan crude in India. The grades imported by Indian refiners, such as Merey-16 and Hamaca, are typically classified as heavy crude.

"We have strong relationships with the traditional suppliers, but at the same time, we are building new relations. So, we will be able to navigate the situation in the coming period," Puri added.

Price responsibility

The minister added that it was extremely important for global oil prices to remain at reasonable levels.

"I believe the old mindset was when energy consumers were pitted against energy producers during an energy crisis. Today, both producers and consumers have a stake in the predictability and viability of the market. If oil prices are too high, they hurt consumers. And if they are too low, there is no incentive to invest in the sector," Puri said.

The statement added that during IEW, shipbuilding contracts involving ONGC, Mitsui O.S.K. Lines of Japan and Samsung Heavy Industries of South Korea are expected to be signed.

"This flagship engagement will underscore India's commitment to fostering strategic partnerships and investment-led growth in the energy sector," the government statement said.

According to Rahul Kapoor, global head of shipping and metals analytics at S&P Global Energy CERA, the Indian shipbuilding industry accounts for less than 1% of the global shipping market.

This contrasts with China, which holds a 61% market share in the order book of major commercial shipping sectors. South Korea and Japan also have significant global influence, with advanced technological capabilities and robust export pipelines, Kapoor said.

India's commercial fleet is much smaller than China's massive merchant marine, underscoring the growth potential for Indian shipyards. India has pledged to secure 1,000 commercial ships over the next decade as part of a national push to grow its shipbuilding industry and maritime sector.