India's HPCL Snaps Up Nigerian Crude To Dodge The Hormuz Bottleneck
Indian state-owned refiner Hindustan Petroleum Corporation Limited (HPCL) has bought 2 million barrels of crude from Nigeria, trading sources told Reuters on Tuesday, as India looks to offset the loss of supply from the Middle East with deliveries from producers farther away. HPCL has acquired Okwuibome and Utapate crudes from Nigeria from commodity trader Glencore via a tender, the sources told…
Indian state-owned refiner Hindustan Petroleum Corporation Limited (HPCL) has purchased 2 million barrels of crude from Nigeria, according to sources cited by Reuters on Tuesday. The move aims to compensate for the reduced supply from the Middle East due to ongoing conflicts. HPCL procured the Niger Delta crudes, namely Okwuibome and Utapate, through a tender process facilitated by commodity trader Glencore.
The crude will be processed at HPCL's Rajasthan refinery, which possesses a capacity of 180,000 barrels per day and is owned 74% by HPCL and 26% by the Rajasthan state government. As tensions escalated in Iran, Indian refineries have been actively seeking alternative sources to mitigate the impact of Middle Eastern supply disruptions.
While Russian crude imports have significantly increased, they alone are insufficient to meet the nation's crude oil needs. Indian refiners are actively exploring new supply options, ranging from Africa to South America, to bypass Middle Eastern chokepoints and secure a steady crude oil supply.
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