Illustrative Image
Two ultra-large crude carriers (ULCCs) have embarked on an 11,000-mile journey from Guyana to India, marking a significant shift for the South Asian nation as it seeks alternative crude oil supplies amid tightening U.S. sanctions on Russian oil.
According to Reuters-compiled shipping data, the vessels Cobalt Nova and Olympic Lion departed Guyana in late November, each carrying approximately 2 million barrels of crude. They are expected to arrive in India by January 2026, marking the first direct oil shipments from Guyana to India since 2021.
This development underscores Indian refineries’ growing efforts to diversify their supply chains after years of reliance on discounted Russian oil. Previously, India imported an average of 1.7 million barrels per day from Russia.
However, new U.S. sanctions imposed last month on Russia’s top oil exporters, Rosneft PJSC and Lukoil PJSC, have raised legal concerns among Indian refiners. These worries were compounded in August when U.S. President Donald Trump doubled tariffs on all Indian imports to 50%.
The Olympic Lion is transporting Guyana’s Golden Arrowhead crude to Paradip Port in eastern India, where the state-owned Indian Oil Corporation (IOC) operates a 300,000-barrel-per-day refinery. IOC secured this cargo from ExxonMobil via a tender in October.
The Cobalt Nova is bound for Mumbai or Visakhapatnam, carrying a blended cargo of Liza and Unity Gold crudes. Sources indicate that Hindustan Petroleum purchased 1 million barrels of each grade, with deliveries scheduled from late December to early January.
Despite the significantly longer voyage compared to traditional oil trade routes, India’s willingness to undertake this journey highlights its determination to diversify supplies and reduce dependence on Russian crude amid geopolitical uncertainties.
Several Indian banks are also reportedly reassessing their financing of non-sanctioned Russian oil trades to mitigate risks associated with shifting international policies.
Guyana, South America’s emerging oil producer, is increasingly attracting major importers due to its rapidly growing output led by international energy giants. However, analysts note that Guyana’s supply constraints and high logistics costs make it unlikely to fully replace Russian volumes.
Experts suggest that India’s move could signal the beginning of a broader restructuring of its oil import strategy, as the nation balances commercial interests, energy costs, and political pressures from global powers.
Expanding imports from South America, Latin America, or Africa may gain further traction, especially as sanctions against Russia are expected to tighten in 2026.
While it remains uncertain whether this marks a long-term trend, the 17,000-kilometer voyage of these two tankers from Guyana clearly demonstrates that Indian refiners are preparing for a new reality: one where Russian oil is no longer a reliable, low-cost option.
Source: ET
BRICS Nation Invests $1 Billion in Rare Earth Development, Aiming to Reduce China Dependence and Attract U.S. Interest with World’s 5th Largest Reserves
The vast majority of viable rare earth mineral deposits are concentrated in the southern regions of this nation.
Vietnam Strengthens Strategic Ties with India, South Korea, and UAE at G20 Summit
On the sidelines of the G20 Summit, Prime Minister Pham Minh Chinh held a series of bilateral meetings with leaders from India, South Korea, and the UAE, forging new cooperative frameworks in trade, investment, science and technology, and finance.
The End of Russia’s Oil Frenzy: BRICS’ Top Buyer Halts Imports, Secures 1 Million Barrels from New Supplier
This esteemed client has just finalized a monumental deal, securing over 1 million barrels of oil from Kuwait.
After India, Two Key Buyers Shun Russian Oil: Exports Plummet 87%, Trade Flows Disrupted
India, alongside two other nations, has accounted for a staggering 90% of Russia’s oil exports.
VinFast Expands with New Factory in Country Surpassing UK, France, and Russia in GDP?
This could potentially become VinFast’s second manufacturing plant in the country.
