HPCL Clarifies: No Talks on Venezuelan Crude Procurement

Hindustan Petroleum Corporation Ltd (HPCL), one of India’s leading state-run refiners, has issued a clear statement denying any ongoing negotiations for Venezuelan crude oil procurement. The clarification comes amid speculation that Indian refiners may explore Venezuelan supplies following easing of certain sanctions.

HPCL officials emphasized that while Venezuelan crude presents opportunities, its high viscosity, bottom-heavy composition, and elevated acid number make it technically challenging to process. The company reiterated that it will evaluate such options only in due course, ensuring compliance with operational and economic considerations.

This stance underscores HPCL’s cautious procurement strategy, balancing global opportunities with refining realities and international compliance standards.

Key Highlights

• No Negotiations: HPCL confirms no talks on Venezuelan crude procurement.
• Technical Challenges: Venezuelan crude is bottom-heavy, highly viscous, and has a high acid number.
• Strategic Approach: HPCL will evaluate options later, prioritizing refining feasibility and compliance.
• Sector Context: Speculation arose after easing of sanctions, but HPCL remains cautious.
• Financial Note: HPCL reported strong refining margins in Q3, boosting net profit by 57.7%.

Sources: The Hindu, Business Standard, ScanX News