Azerbaijan has resumed crude oil exports to India after a 10-month hiatus, signalling a thaw in bilateral ties, with the two countries sorting out the pricing issue that had led to the halting of supply, according to people familiar with the matter. In August, Azerbaijan exported 1,747.07 tonnes of crude oil to India, valued at $781,520, according to its customs data.
Energy cooperation has been the main pillar of economic relations between the two countries. In 2024, India was the fourth largest buyer of petroleum and petroleum products from Azerbaijan, having imported 1.17 million tonnes of the commodities worth about $729 million. In 2022 and 2023, India was the third largest buyer, importing more than 2 million tonnes each year, for $1.6 billion and $1.2 billion, respectively.
Besides being a major buyer of petroleum products, India is also a significant investor in Azerbaijan. ONGC Videsh Ltd (OVL) has invested more than $ 1.2 billion in acquiring stakes in the Azeri-Chirag-Gunashli (ACG) oil and gas fields and the Baku-Tbilisi-Ceyhan (BTC) oil pipeline, according to a brief by the Indian Embassy in Baku.
In 2024, OVL completed acquisition of an additional 0.615% participating interest in the ACG oil and gas field from Equinor at an investment of $60 million. The deal included acquisition of 0.737% shares of Equinor in the BTC pipeline. The buyout from Equinor raised OVL’s stake in the ACG oil and gas field to 2.925% and in the BTC pipeline to 3.097%.
