Hindustan Oil Exploration Company (HOECL) announced it will engage in discussions with Hindustan Petroleum Corporation Ltd (HPCL) to address operational issues caused by high chloride content in crude oil processed at HPCL’s Mumbai refinery. Both companies aim to resolve the matter amicably in line with contractual terms.
Hindustan Oil Exploration Company (HOECL) confirmed it will enter discussions with Hindustan Petroleum Corporation Ltd (HPCL) to redress concerns raised by HPCL regarding crude oil quality from the B-80 Mumbai Offshore oilfield. HPCL identified operational challenges, including corrosion in downstream units caused by high chloride content in the crude processed in October 2025.
HOECL stated that the crude quality was based on independent lab assays, and no loss or damage attributable to them has been established yet. The company emphasized previous shipments of crude from the same block did not encounter quality issues. The dialogue with HPCL seeks to find a mutually agreeable solution while adhering to contractual conditions.
HPCL is pursuing claims and damages as per agreements while taking necessary steps to restore refinery operations promptly. The issue has drawn market attention with HPCL shares gaining, while HOECL’s stock saw a minor dip on BSE following the announcement.
Important Points
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HOECL to engage with HPCL over crude oil quality concerns.
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HPCL experienced corrosion issues processing crude from B-80 oilfield in October 2025.
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HOECL references independent assay reports asserting quality compliance.
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No confirmed damage or loss attributable to HOECL yet; discussions ongoing.
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CL pursuing claims per contractual terms and working to resume normal operations.
Source: Economic Times, HOECL official communiqué, BSE