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.