India’s state-run oil refiners are expanding their oil sourcing beyond the Middle East, turning to West Africa, Nigeria, and other regions to ensure reliable supplies amidst regional tensions and logistical adjustments.
India’s state-run refiners are widening their search for crude beyond the Middle East as tensions in the region continue to unsettle shipping routes and complicate deliveries. Reuters reported that Hindustan Petroleum Corporation Limited has bought 2 million barrels of Nigerian crude from Shell, adding to a recent run of purchases from West Africa as Indian buyers seek more reliable supply.
According to trade sources cited by Reuters, HPCL secured 1 million barrels each of Forcados and Bonga for its Visakh refinery in Andhra Pradesh, a plant capable of processing 300,000 barrels a day. The purchases follow an earlier tender in which HPCL was said to have taken 2 million barrels of Okwuibome and Utapate crude from Nigeria through Glencore. Those cargoes are due to feed HPCL Rajasthan Refinery Limited, which has a capacity of 180,000 barrels a day and is majority owned by Hindustan Petroleum.
The buying has not been limited to Nigeria. Business Standard reported that Indian refiners, including Indian Oil Corporation and Mangalore Refinery and Petrochemicals, have also locked in enough crude and liquefied petroleum gas to cover needs through at least August, helped by extra purchases from Abu Dhabi National Oil Company and other suppliers. The paper said ADNOC cargoes are being moved via ship-to-ship transfers through hubs such as Fujairah and Sohar, underlining how Indian refiners are adapting their supply chains to keep barrels flowing.
Indian Oil Corporation has been especially active. Business Standard and MarketScreener reported that the company bought 5 million barrels of crude from West Africa and the Middle East, including Angolan Kissanje and Nemba, Nigerian Usan and Murban from Abu Dhabi, with West African grades trading at premiums of around $4 a barrel to dated Brent. Reuters also reported earlier this week that state-controlled Mangalore Refinery and Petrochemicals had bought about 1 million barrels of Oman crude at a premium of about $3 a barrel to dated Brent, while Indian refiners were also looking as far afield as Angola and Venezuela as Middle Eastern term cargoes were delayed again in July.
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