Why in News?
Indian Oil Corporation (IOC) has signed a five-year agreement with the State Trading Corporation of Mauritius to supply petroleum products to Mauritius. The agreement comes amid global energy market disruptions caused by the West Asia conflict and supply concerns around the Strait of Hormuz.
Key Highlights
- The agreement will ensure the supply of petrol, diesel, marine gas oil and aviation turbine fuel (ATF) to Mauritius for five years.
- India and Mauritius have also signed a Government-to-Government MoU on oil and gas cooperation to strengthen bilateral energy ties.
- Union Petroleum Minister Hardeep Singh Puri signed the agreements during his visit to Mauritius.
- The deal will provide Mauritius with long-term supply certainty, greater price stability and improved energy security.
- India’s energy partnership with Mauritius dates back to 2001, when Indian Oil began operations in the country through Indian Oil Mauritius Ltd.
- India is the world’s fourth-largest refiner, with refining capacity of around 258 million tonnes per year, and is a major exporter of petroleum products.
Significance for India
The agreement strengthens India’s role as a reliable energy partner in the Indian Ocean region. It also expands the reach of Indian oil companies and supports India’s broader energy diplomacy with neighbouring and island countries.