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Indian Refiners Seek West African Crude Amid Hormuz Shipping Disruptions

Created at 5 Aug · 3:28 PM2 sources↑ Market-relevant2 events
IN SHORT

Indian refiners are increasingly sourcing crude oil from West Africa and Oman due to shipping constraints in the Strait of Hormuz and Bab el-Mandeb. State-owned Hindustan Petroleum Corporation Limited (HPCL) recently acquired 2 million barrels of Nigerian crude from Shell.

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Key Numbers

2 million barrelsNigerian crude purchased by HPCL from Shell
1 million barrelsNigerian crude grade Forcados purchased by HPCL
1 million barrelsNigerian crude grade Bonga purchased by HPCL
300,000 bpdVisakh refinery capacity
2 million barrelsNigerian crude purchased by HPCL from Glencore
180,000 bpdHPCL Rajasthan Refinery Limited capacity
74%HPCL stake in HRRL
1 million barrelsOmani crude purchased by MRPL
$3 per barrelPremium paid for Omani crude over Dated Brent
4 million barrelsWest African crude purchased by IOC

Who's Involved

Hindustan Petroleum Corporation Limited (HPCL)
State-owned Indian refiner purchasing Nigerian crude
Shell
Seller of Nigerian crude to HPCL
Glencore
Commodity trader that sold Nigerian crude to HPCL
Mangalore Refinery and Petrochemicals Limited (MRPL)
State-controlled Indian refiner that acquired Omani crude
Mitsui & Co Energy Trading Singapore
Seller of Omani crude to MRPL
Indian Oil Corporation (IOC)
Largest Indian refiner that bought West African crude
Chevron
Seller of West African crude to IOC
Indian Refiners Seek West African Crude Amid Hormuz Shipping Disruptions

↳ Why This Matters

Disruptions in key shipping lanes like the Strait of Hormuz are forcing major oil consumers like India to seek more distant and potentially more expensive crude supplies, impacting global energy flows and refinery economics.

Key facts

  • Indian refiners are sourcing crude oil from West Africa and Oman due to shipping disruptions in the Strait of Hormuz and Bab el-Mandeb.
  • Hindustan Petroleum Corporation Limited (HPCL) purchased 2 million barrels of Nigerian crude from Shell.
  • Mangalore Refinery and Petrochemicals Limited (MRPL) acquired approximately 1 million barrels of Omani crude.
  • Indian Oil Corporation (IOC) bought 4 million barrels of West African crude from Chevron.
  • Refiners are seeking supplies from distant producers like Angola and Venezuela to compensate for Middle Eastern term supply losses.

Indian refiners are increasingly sourcing crude oil from West Africa and Oman as geopolitical tensions and shipping constraints disrupt traditional supply routes through the Strait of Hormuz and the Bab el-Mandeb strait. State-owned Hindustan Petroleum Corporation Limited (HPCL) has acquired 2 million barrels of Nigerian crude oil from Shell, comprising 1 million barrels each of Forcados and Bonga grades for its Visakh refinery. HPCL had also previously purchased 2 million barrels of Okwuibome and Utapate crudes from Nigeria via Glencore for its Rajasthan refinery. State-controlled Mangalore Refinery and Petrochemicals Limited (MRPL) acquired about 1 million barrels of Omani crude at a premium of approximately $3 per barrel to Dated Brent from Mitsui & Co Energy Trading Singapore. Additionally, Indian Oil Corporation (IOC), the country's largest refiner, purchased 4 million barrels of West African crude, including Angolan and Congolese grades, from Chevron. These moves come as Indian refiners scramble to replace lost term supplies from the Middle East, with increased imports of Russian crude proving insufficient. The search for alternative sources extends as far as Angola and Venezuela to circumvent the Middle Eastern chokepoints.

Frequently asked questions

They are seeking alternatives to Middle Eastern crude due to shipping constraints and disruptions in the Strait of Hormuz and Bab el-Mandeb.

Purchases include Omani crude, Angolan grades like Nemba and Saxi Batuque, Congo's Djeno crude, and Nigerian crudes Forcados, Bonga, Okwuibome, and Utapate.

Omani crude was acquired at a premium of approximately $3 per barrel to Dated Brent.

What Happens Next

01Indian refiners will continue to seek alternative crude oil sources globally.
02Monitoring of shipping traffic and security in the Strait of Hormuz and Bab el-Mandeb will be crucial.

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How It Developed

Indian refiners are seeking crude oil from West Africa and Oman due to shipping constraints in the Strait of Hormuz and Bab el-Mandeb.
Hindustan Petroleum Corporation Limited (HPCL) acquired 2 million barrels of Nigerian crude oil from Shell.
HPCL bought 1 million barrels each of Nigerian crude grades Forcados and Bonga for its Visakh refinery.
HPCL acquired 2 million barrels of Okwuibome and Utapate crudes from Nigeria from commodity trader Glencore.
Mangalore Refinery and Petrochemicals Limited (MRPL) acquired about 1 million barrels of crude oil from Oman.
Indian Oil Corporation bought 4 million barrels of West African crude, including grades from Angola and Congo, from Chevron.

Sources

T1
Hormuz Bottleneck Pushes Indian Refiners Toward West African GradesOilPrice.com
T1
Indian Refiners Continue West Africa Crude Buying SpreeOilPrice.com

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