Hindustan Petroleum Corp Ltd (HPCL), the Indian state-run refiner, is actively seeking Venezuelan crude to expand its heavy-oil processing capability, company Chairman Vikas Kaushal said on Tuesday.
Speaking on the sidelines of the Indian Energy Week conference in Goa, Kaushal said the move marks the first time HPCL has looked for Venezuelan oil. "We are trying to build more flexibility in our system as we have two new facilities, so we can raise heavy crude processing," he told reporters, referencing the residue upgradation facility at Vizag and the Barmer refinery.
The interest in Venezuelan barrels comes as Indian refiners evaluate crude being offered by trading houses Vitol and Trafigura under a U.S.-mandated sale, which followed Washington's capture of Venezuelan President Nicolas Maduro earlier this month, according to the account provided at the event. Kaushal confirmed HPCL is "looking for Venezuelan oil, something we have not processed in the past."
HPCL also intends to bring crude processing online at its 180,000 barrels-per-day (bpd) Barmer refinery in Rajasthan by the end of the month. If that timeline holds, the refinery would make HPCL the second-largest state-run refiner in India, behind Indian Oil Corp and replacing Bharat Petroleum Corp in that ranking.
Kaushal said HPCL has recently processed Brazilian Tupi crude and has increased throughput of West African oil. He was explicit about the company’s stance on Russian supplies, stating: "We are not touching sanctioned Russian crude."
HPCL’s current refining footprint includes a 190,000 bpd facility in Mumbai, western Maharashtra, and a 300,000 bpd refinery at Vizag in Andhra Pradesh. The company also holds a 48.99% stake in HPCL-Mittal Energy Ltd, the operator of the 226,000 bpd Bathinda refinery in Punjab. HPCL Mittal is undertaking a capacity increase at Bathinda of 10,000 bpd, the company said.
The statements outline HPCL’s short-term operational priorities: increase heavy-crude processing flexibility through new facilities, evaluate alternative crude sources such as Venezuelan barrels being offered on the market, and bring the Barmer refinery into production within weeks.
Impacted sectors: refining, upstream crude procurement, trading.