India accelerates energy push into Africa as global markets shift
India is increasingly turning to Africa as a strategic partner in its efforts to diversify energy sources and secure future supply. This shift in focus comes as India's crude oil imports from Russia fell to a two-year low in February 2025, prompting a renewed push to diversify its sources of energy. According to Reuters, India's oil imports from African nations rose dramatically to about 330,000 barrels per day (bpd) in February, more than doubling from 143,000 bpd in January.
This month, Indian Oil Corporation (IOC), one of the country’s top refiners, is set to receive two million barrels of Nigeria’s Okwuibome crude, alongside one million barrels each from Nigeria’s Akpo and Angola’s Mostarda fields. This growing engagement reflects Africa’s strategic position within the G20 framework, as the continent continues to strengthen ties with G20 countries and solidify its role as a key partner in global energy security.
New investments
India’s shift toward Africa is also being seen through its latest investments. Last month, ONGC sanctioned a $175 million loan to support the Area 1 Mozambique Project. Three Indian state-run companies – ONGC Videsh, Bharat Petroleum Corporation Ltd. (BPCL) and Oil India Ltd – hold a combined 30% stake in the project. The project targets 75 trillion cubic feet of recoverable natural gas, with Area 1 encompassing major gas fields such as Windjammer, Barquentine, Lagosta, Camarão, Golfinho, Orca and Atum. In December 2024, BPCL announced plans to invest approximately $32.9 billion on its exploration and production blocks in Mozambique and Brazil, further solidifying India’s growing role in Africa’s energy landscape and showcasing its commitment to expanding energy partnerships on the continent.
The country is also turning its focus to Nigeria, where it has been involved in small-scale refining opportunities, including a chemicals and fertilizer plant, and made a $14 billion investment pledge in 2023. Speaking at CERAWeek in Houston last month, ONGC reaffirmed India’s focus on increasing investments in Africa, as well as the Middle East and Latin America. In response to this strategic shift, the Nigerian National Petroleum Corporation has urged Indian investors to capitalize on opportunities in Nigeria’s oil and gas sector, especially in refining and natural gas. With attractive reforms in place, Nigeria is eager to expand its refining capacity and reduce dependency on imported refined products.