HPCL Faces Operational Issues at Mumbai Refinery Due to Poor-Quality Crude from HOEC Field

Hindustan Petroleum Corp. Ltd. said its Mumbai refinery is facing operational disruptions caused by crude oil sourced from Hindustan Oil Exploration Ltd.’s B-80 offshore field.

The company has procured 54.6 tonnes of crude oil from the field through auction, it said in an exchange filing on Monday. However, the high salt and chloride content in the crude has led to corrosion in downstream units, lower output, and reduced production levels.

HPCL said the crude quality was beyond the contractual terms of its offtake agreement with Hindustan Oil Exploration. The matter has been raised with the supplier, and the company will pursue claims and damages as per the contract.

The state-run refiner added that it has initiated steps to stabilise and normalise operations at the refinery.