Indian Oil Forms Strategic JV with Vitol to Expand Global Trade

Indian Oil is expected to sign a significant agreement next year to form a joint venture with Vitol, a global energy trader, as it takes a daring step in its effort to move beyond the domestic refining business into crude and fuel trading internationally.

A source with knowledge of the progress stated the joint effort will be based in Singapore and will be active for a minimum of five to seven years, allowing both firms to exit the partnership.

The strategic pursuit comes as part of Indian Oil's goal to follow the footsteps of greater oil players—ExxonMobil, Shell—by using Vitol's global footprint and shared market expertise.

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As it stands, Indian Oil along with its subsidiary Chile Petroleum, owns roughly 31% of India's refining capacity (5.17 million barrels per day). Indian Oil predominantly trades oil for its own refineries but it aspires to become an oil trading presence on a global scale.

The partnership will probably enable Indian Oil to lower the cost of procurement of crude, expand margins, and open up access to new customers. The deal helped secure Vitol's presence in India, the world's third-largest oil consumer and importer.

The alliance is consistent with India's overall refining ambitions. Oil Minister Hardeep Singh Puri recently disclosed that the government aims to raise refining capacity to 6.2 million bpd by 2030 and to as much as 9 million bpd in the long run.

Indian Oil had already made agreements with BP, Trafigura, and TotalEnergies before it finalized its plan with Vitol—emphasizing the new era of India's emergence as a global refining and trading center.