Indian refiners have purchased four million barrels of Nigerian crude as disruptions to Middle Eastern oil supplies push the country to seek alternative sources.
Hindustan Petroleum Corporation Limited (HPCL) acquired two million barrels of Nigerian crude through separate tenders, according to Reuters. The latest purchases comprise one million barrels each of Forcados and Bonga crude grades from Shell.
The cargoes are expected to supply HPCL’s Visakh refinery in Andhra Pradesh, which has a processing capacity of 300,000 barrels per day.
HPCL had earlier bought another two million barrels of Nigerian crude from commodity trader Glencore. That transaction involved one million barrels each of Okwuibome and Utapate crude.
The Glencore cargoes are expected to be delivered to HPCL Rajasthan Refinery Limited, which has a processing capacity of 180,000 barrels per day. HPCL owns 74 per cent of the refinery, while the Rajasthan State Government holds the remaining stake.
The purchases come amid disruptions to Middle Eastern crude supplies linked to the US-Iran crisis and shipping difficulties around the Strait of Hormuz and Bab el-Mandeb.
Several Indian refiners have consequently increased their purchases from West Africa and other alternative markets. Mangalore Refinery and Petrochemicals Limited recently bought about one million barrels of Omani crude, while Indian Oil Corporation purchased four million barrels of West African crude from Chevron.
The Indian Oil Corporation deal included Angola’s Nemba, Saxi Batuque and Clov grades, as well as Congo’s Djeno crude.
Indian refiners are increasingly sourcing crude from countries such as Nigeria, Angola and Venezuela as some Middle Eastern supplies remain disrupted.
The stronger demand for alternative crude grades has also coincided with higher oil prices. Crude oil rose to about $81 per barrel on Thursday, compared with $79 per barrel the previous day.









