India turns to Guyana for crude as US sanctions disrupt Russian oil supply

Two supertankers have embarked on a rare and lengthy voyage from Guyana to India, signaling the lengths Indian refiners are going to secure non-Russian crude after the United States tightened restrictions on discounted Russian oil.

The Very Large Crude Carriers Cobalt Nova and Olympic Lion departed Guyana in the final days of November, each carrying approximately 2 million barrels of crude. The vessels are expected to reach India in January, according to ship-tracking data compiled by Bloomberg.

These shipments mark the first crude deliveries from Guyana to India since 2021, when two cargoes of 1 million barrels each made the same journey.

India, which had been importing around 1.7 million barrels per day of Russian crude, faces heightened risks after recent US sanctions targeting Russia’s largest oil exporters, Rosneft PJSC and Lukoil PJSC. The restrictions, combined with trade tensions following US President Donald Trump’s doubling of tariffs on Indian imports to 50% in August, have prompted Indian refiners to seek alternative sources.

The Olympic Lion is transporting Guyana’s Golden Arrowhead crude to Paradip on India’s east coast, where Indian Oil Corp., a state-owned company, operates a 300,000 barrel-per-day refinery. The cargo was purchased from ExxonMobil Inc. through a tender in October.

By Sabina Mammadli