Indian Oil purchases oil from Colombia for the first time, diversifying imports outside Russia

India's largest oil refiner Indian Oil Corp has purchased oil from Colombia for the first time, purchasing a batch of 2 million barrels of Castilla crude. This is reported by The Public with reference to Reuters. 

The delivery is scheduled for the end of February 2026 and is carried out under an option agreement with the state oil company Ecopetrol. Under the terms of the contract, IOC can purchase up to 12 million barrels of oil, which is equivalent to the loading of six large oil tankers. The agreement was signed at the end of 2021 and has been renewed annually since then

Analysts note that Indian Oil traditionally covers the bulk of its needs through supplies from Russia and the Middle East. Purchases of South American crudes are rare, despite the existence of option contracts with Mexico, Brazil and Colombia. The reason for this is the price parameters, as crude from South America is usually less competitive than Russian and Middle Eastern oil

At the same time, according to Reuters sources, Indian refiners are actively looking for alternative sources of supply. Tightening sanctions by the U.S. and European Union against Russian producers and the tanker fleet complicates oil imports from Russia and pushes India to expand its purchasing geography