New Delhi: As the Strait of Hormuz reopens following last week’s memorandum of understanding between the United States and Iran, attention has turned to how major oil importers such as India weathered a disruption that closed one of the world’s key energy arteries for months. One answer lay far from the Gulf, in West Africa.

As Hormuz reopens, India's pivot to Nigerian crude highlights diversification drive

Between March and May, at the height of the crisis, India’s three state refiners, Indian Oil Corporation, Bharat Petroleum and Hindustan Petroleum, took delivery of about six million barrels of crude from Sterling Oil Exploration and Energy Production Company (SEEPCO), a Nigeria-based producer controlled by Indian businessman Nitin Sandesara, according to people familiar with the shipments. The volume is equivalent to roughly 25 days of SEEPCO’s output; the company produces over 80 million barrels of crude a year, according to company figures.

The Strait of Hormuz carries close to a fifth of the world’s seaborne oil, and its effective closure for much of this year created a historic energy crisis. India, which imports more than 85 per cent of its crude, was among the most exposed major economies. Three Indian seafarers were reported dead off the coast of Oman during the standoff.

Under the agreement signed on June 17, the United States lifted its naval blockade and Iran agreed to let commercial vessels transit the strait freely for 60 days, with the waterway’s future administration to be settled later with Oman and other Gulf states. Shipowners have begun moving vessels through the strait again, though parts of the central channel remain closed pending mine-clearing and wider negotiations are unresolved.

Crude from Nigeria carries strategic relevance because it avoids the Gulf entirely. SEEPCO’s Okwuibome grade loads on Africa’s Atlantic coast and reaches India without transiting Hormuz, insulating it from disruption there. Industry observers say such sourcing reduces exposure to chokepoint risk and reflects a wider diversification push likely to persist even as the immediate crisis eases.

SEEPCO remains the only Indian-owned company producing crude within an OPEC member nation, giving India access to production not wholly dependent on third-party suppliers. The shipments also mark its return to direct business with India’s public-sector refiners, after legal proceedings involving Sandesara were concluded.

Six million barrels represent only a fraction of India’s overall crude requirement, but the deliveries underline the growing role of alternative sources in its energy strategy. With the strait reopening under an interim arrangement whose longer-term terms are still being negotiated, analysts say supplies from regions such as West Africa are likely to remain a hedge against future disruptions