India's HPCL buys 2 million barrels of Nigerian crude to bypass Hormuz chokepoint
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HPCL buys 2 million barrels of Nigerian crude from Glencore to offset Middle East supply losses disrupted by the Iran war. The Okwuibome and Utapate grades will feed the HPCL Rajasthan Refinery, which processes 180,000 barrels per day. The purchase comes as Indian refiners scramble for crude that bypasses the Strait of Hormuz, with Middle Eastern term deliveries trapped again in July.
The Nigerian Crude Deal
On Tuesday, HPCL bought 2 million barrels of Okwuibome and Utapate crudes from Glencore via a tender, trading sources told Reuters. The oil will supply the HPCL Rajasthan Refinery, a 180,000 bpd facility in which HPCL holds a 74% stake and the Rajasthan government holds the rest. HPCL managing director Vikas Kaushal said the company received hardly any term supplies from the Middle East in the first quarter, as cargoes were stuck west of Hormuz.
Indian Refiners Hunt for Safe Routes
Since the Iran war began, Indian refiners have scrambled to replace lost Middle Eastern barrels. India boosted Russian crude imports to a record high in July, covering over half of total imports, but that is insufficient. Refiners are now testing grades from as far as Angola and Venezuela, senior executives told the Economic Times, as term deliveries from the Middle East were trapped again in July.
What's Next
HPCL and other Indian refiners are expected to continue seeking alternative crude sources in the coming months, with tenders likely for West African and Latin American grades. It remains unclear whether the Iran conflict will allow any resumption of normal flows through Hormuz, and analysts warn that prolonged disruptions could force India to further restructure its crude basket.
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India's HPCL buys 2 million barrels of Nigerian crude to bypass Hormuz chokepoint
