“We will probably be one of many main (Indian) corporations (in Canada). We’ll be transferring forward. We will probably be engaged on a number of areas with Canada. It might be sourcing crude, sourcing of LNG and it could be exploring there. We usually go forward with an area companion globally for exploration and we will do extra exploration there,” Sahney instructed Mint.
The push comes as New Delhi and Ottawa work on a strategic reset following a change in management in Canada, with Prime Minister Mark Carney assuming workplace, and after a interval of tensions over pro-Khalistan components primarily based in Canada. Each international locations are additionally navigating new US tariffs and are in search of to deepen vitality partnerships.
Earlier this week, India and Canada launched a renewed Ministerial Vitality Dialogue, with each side stressing the significance of vitality safety and variety of provide for the financial vitality of the 2 international locations. Bilateral ties have revived over the previous yr after each international locations expelled one another’s diplomats and India recalled its excessive commissioner from Canada in October 2024.
Canada is presently not supplying vitality to India. Nonetheless, with India persistently diversifying its vitality sourcing basket, efforts to spice up vitality ties have accelerated. Canada is the world’s fourth-largest oil producer, producing over 5 million barrels per day as of 2024, in keeping with knowledge from the Canadian authorities. It additionally holds the world’s fourth-largest confirmed oil reserves at 163 billion barrels, of which 159 billion barrels are in oil sands.
Requested whether or not Indian Oil would make additional investments in its Canadian subsidiary IndOil Montney Ltd, Sahney stated, “Sure…We are going to go forward as tasks come alongside. We’ve an intent of accelerating the engagement of our subsidiary in Canada.”
Why Canada issues
The transfer issues for India, the world’s third-largest oil purchaser, which imports practically 90% of its crude requirement and sourced oil price $161 billion final fiscal, accounting for a few quarter of the nation’s import invoice. A $1 per barrel fall in oil costs reduces India’s import invoice by about ₹13,000 crore.
India is the world’s fourth-largest refiner with a complete capability of 258.1 million tonnes every year (mtpa), anticipated to rise to 309.5 mtpa by 2030. Indian Oil accounts for round 31% of present capability at 87.5 mtpa.
Indian Oil, the nation’s largest refiner, reported upstream manufacturing of 4.45 million metric tonne of oil equal (MMtoe) within the final monetary yr, up from 4.26 MMtoe within the earlier yr. In its annual report for FY25, the corporate attributed a part of the rise to increased manufacturing from the Pacific NorthWest LNG challenge in Canada.
IndianOil, via IndOil Montney Ltd, Canada, purchased a ten% stake in shale fuel belongings together with the proposed Pacific NorthWest LNG Ltd export facility in British Columbia and Canada’s west coast from Malaysia’s Petroliam Nasional Bhd (Petronas) in a $1.1 billion transaction in 2014. The corporate has not made any main funding in Canada’s exploration and manufacturing house since that acquisition.
As of FY25, proved developed reserves of IndianOil’s Canadian belongings stood at 1,670.73 thousand metric tonnes of crude oil and 14,922.47 million cubic metres of pure fuel, in keeping with its annual report.
IndOil International B.V. is the Netherlands-based funding arm of Indian Oil for exploration and manufacturing belongings in Canada and the United Arab Emirates, whereas IndOil Montney Ltd is its step-down subsidiary.
Diversifying past Russia
On navigating unstable oil markets amid US tariffs and strain to decrease imports of Russian crude, Sahney stated, “We, as an organization, need to be commercially proper going ahead…That’s my job of procuring crude from as huge a basket as huge a canvas and course of it in probably the most worthwhile, probably the most cost-effective method and dispense the product to the shopper at least value.”
India presently imports oil from about 41 international locations. Since sanctions on Rosneft and LUKOIL had been introduced into impact in November, India has been seeking to additional diversify its import basket. A parliamentary standing committee on petroleum and pure fuel final month flagged issues over India’s excessive import dependence and urged diversification of crude sourcing.
Sahney stated Indian Oil would have a look at sourcing from smaller oil-producing international locations, together with in Africa.
“There are a number of international locations which produce little or no gas, possibly one cargo in a month or two cargos in a month. That may be a sort of sourcing we’re additionally encouraging now to herald (extra crude),” he stated.
Sahney additionally famous that Brazil, Colombia and Guyana have emerged as new suppliers. Information from ship-tracking agency Kpler confirmed that within the first 20 days of January, common provides from Brazil stood at 239,000 barrels per day, Colombia at 98,000 bpd and Guyana at 210,000 bpd.
“Brazil is developing. Colombia is developing and Guyana is developing. These are the elements which weren’t there like three years earlier. And now we now have acquired these three sources open up. We’re additionally taking a look at some smaller international locations which we weren’t taking a look at earlier, however as a result of we need to diversify our sources we’re going into these,” he stated.
Indian vitality imports are set to rise as complete petroleum product consumption is projected to achieve a file 252.9 million metric tonnes in FY26, a 4.65% improve from 241.8 million tonnes in FY25, in keeping with the Petroleum Planning & Evaluation Cell of the petroleum and pure fuel ministry.
The reporter is in Panaji on the invitation of the union petroleum and pure fuel ministry.