Latin American countries such as Venezuela and African nations such as Nigeria have been strengthening their position as important suppliers of crude oil to India. This, even as West Asia remains the major source of crude for Indian refiners.
Among other factors, geo-political dynamics including the US sanctions on Iran have contributed to countries outside West Asia increasing their share of the pie.
Iran factor
For instance, Reliance Industries, the country's biggest importer which used to import a significant quantity of crude oil from Iran until fiscal 2010, did not source any oil from that country in 2011.
Industry observers say, the company's increasing business interests in the US during fiscal 2011, especially in the high-potential shale gas arena, may have contributed to this.
While Reliance continues to source the bulk of its crude oil requirement from Saudi Arabia, Iran's loss has been clearly Venezuela's gain.
Venezuela's entry
Out of India's total crude oil imports of 163.6 million tonnes (mt) in FY11, around 10.3 mt was sourced from Venezuela, all of it by Reliance. Venezuela accounted for more than 16 per cent of Reliance's total crude oil imports of 63.5 mt during the fiscal.
India's crude oil imports from Africa, especially Nigeria, have also been increasing significantly. As much as 15.8 mt was imported from Nigeria during FY 11, the bulk of it (around 12.3 mt) by PSU refining major Indian Oil.
The increasing contribution of Venezuela and Nigeria notwithstanding, West Asia still accounted for the bulk (almost 65 per cent) of the crude oil sourced by India during the fiscal 2011. Saudi Arabia maintained its pole position and supplied around 27.4 mt last year.
It is interesting that despite losing customers, Iran was still the second largest supplier of crude oil (18.5 mt) to India. Other key West Asian producers such as Iraq and UAE increased their crude oil sales to India in fiscal 2011, supplying 17.2 mt and 14.7 mt respectively.