Report: IndianOil secures first Colombian crude cargo under Ecopetrol deal

NEW DELHI, January 2, 2026 – Indian Oil Corporation has purchased its first shipment of Colombian crude oil under an optional supply deal with Ecopetrol, Reuters reported on Wednesday.

According to two sources familiar with the matter, IndianOil has bought 2 million barrels of Castilla crude for delivery in February 2026, to be used as feedstock in its refinery operations. IndianOil’s optional supply contract with Ecopetrol was initially signed in 2021 and has been renewed annually, and is reported to allow for the purchase of approximately 12 million barrels, equivalent to around 6 VLCC cargoes.

 

The move comes amid efforts by IndianOil and other Indian refiners to diversify their supply streams in response to tighter US and EU sanctions that are disrupting imports of Russian crude. IndianOil sources most of its oil from Russia and the Middle East, which offer more competitive terms than South American suppliers, but the company holds optional contracts with Brazil, Colombia and Mexico.

Ecopetrol is Colombia’s largest integrated oil company and a key player in South America, with operations spanning the domestic upstream and downstream sectors, including production, transportation, refining and marketing of oil and gas. IndianOil is India’s top refiner.

 

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