India, Brazil Strengthen Energy Ties as Trump Tariffs Hit Crude

• India boosts Brazilian crude imports, up 75% in H1 2025, mainly medium-sweet grades
• Modi and Puri visit Brazil to expand oil trade and joint offshore projects amid US tariffs
• Indian firms’ new Brazilian projects to raise production to 40,000 boe/d by 2028

Due to the high tariff levels imposed by the US on imports from both India and Brazil, both countries are actively assessing the potential for increasing bilateral oil trade. As S&P Global Commodity Insights reported earlier this week, India is searching for alternatives to Russian crude, while Brazil is searching for new outlets to sell its oil.

Benjamin Tang, Head of Liquid Bulk at S&P Global Commodities at Sea (CAS) stated, "Brazilian crude exports to India will be closely watched in the coming months, particularly as both countries navigate the impact of US tariffs related to Russian oil imports".

India is still receiving Russian crude imports, but Indian refiners appear to be looking for some commodity diversification which could open the door to larger volumes of Brazilian crude. In the first half of 2025, Indian crude imports from Brazil increased 75% year-on-year to 72,000 barrels per day.

Most of these cargoes carried medium-sweet grades of crude oil - Lula, Tupi, and Sepia.  Primarily Indian Oil Corporation (IOC) and Reliance Industries (RIL) were the buyers, and cargo discharges were mainly through Paradip and Sikka terminals.

At some level of diplomatic relations, there must be some visibility of this ramping-up of trade as Prime Minister Narendra Modi and Petroleum Minister Hardeep Singh Puri have both travelled to Brazil in the past twelve months concerning potential increased crude imports and new offshore exploration projects.

Also Read: Russia Eyes Joint Energy Projects with India, says Lavrov

Prime Minister Narendra Modi said, "We are committed to deepening our strategic partnership, including in trade, energy, technology, defense, health, and more. A strong, people-centric partnership between global south nations benefits everyone".

India's activity in Brazil, particularly in upstream oil, continues to expand due to the United States' 25 percent extra tariff on Indian imports due to Indian purchases of Russian oil, which has raised total duties to 50 percent, which has intensified India's pursuit of diversify suppliers including Brazil which is also trying to engage with partners in India due to the same US tariffs.

Despite challenges related to logistics and price, and competing regions, India has been increasingly active in Brazil's upstream space. Recently oil India Ltd signed an MOU with Petrobras related to offshore exploration, ONGC and BPCL also have equity interests in Brazilian blocks.

There are new initiatives including SEAP 1 and SEAP 2 and Wahoo which will add around 40,000 boe/d of Indian entitlement production in Brazil by 2028. All of this highlights India's more pronounced change in strategy and intent as they engage more closely with upstream developments and South American crude and upstream development.