Hindustan Petroleum Corporation Ltd. (HPCL) has announced plans to explore Venezuelan crude oil imports for the first time, marking a significant shift in its procurement strategy. While acknowledging challenges in processing the heavy, high-viscosity crude, HPCL sees opportunities to leverage its refining assets to diversify supply and strengthen energy security.
Hindustan Petroleum Corporation Ltd. (HPCL), one of India’s leading state-run refiners, has revealed its intent to source Venezuelan crude oil for the first time. The announcement comes as global energy markets evolve, with India seeking to diversify supply chains and reduce reliance on traditional sources.
Key Highlights:
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First-Time Procurement: HPCL’s chair confirmed the company is actively evaluating Venezuelan crude imports.
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Crude Characteristics: Venezuelan oil is bottom-heavy, with high viscosity and acid content, making it technically challenging to process.
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Refining Capability: HPCL’s Visakhapatnam bottom-upgrade project and Barmer refinery with delayed coker units provide flexibility to handle heavier grades.
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Strategic Context: The move aligns with India’s broader energy diversification strategy amid geopolitical uncertainties.
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Compliance Assurance: HPCL emphasized adherence to international compliance standards, clarifying it does not purchase sanctioned Russian oil.
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Market Outlook: Venezuelan crude offers potential cost advantages but requires careful evaluation of refining economics and margins.
This step reflects India’s proactive approach to securing diverse energy sources while balancing technical challenges and global compliance.
Sources: Reuters, The Hindu BusinessLine, The Economic Times