Hindustan Petroleum Corporation Ltd (HPCL) has reported operational disruptions at its Mumbai refinery after processing 54.6 TMT of crude oil sourced from Hindustan Oil Exploration Company (HOECL). The company cited high salt and chloride content in the crude and is pursuing claims and damages under contractual terms.
HPCL has initiated contractual claims against Hindustan Oil Exploration Company (HOECL) following significant operational issues at its Mumbai refinery. The problems arose after HPCL processed 54.6 thousand metric tonnes (TMT) of crude oil from HOECL’s B-80 offshore field in October 2025. The crude was found to contain excessive salt and chloride levels, leading to corrosion in downstream units, reduced output, and suboptimal performance.
The company confirmed that the matter has been formally taken up with the supplier and that claims and damages are being pursued in line with contractual obligations. HPCL is also implementing corrective measures to restore normal operations and mitigate further impact.
Major Takeaways:
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Crude Source: 54.6 TMT from HOECL’s B-80 offshore field
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Issue Identified: High salt and chloride content in crude
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Operational Impact: Corrosion, reduced output, and processing inefficiencies at Mumbai refinery
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Action Taken: HPCL pursuing claims and damages under contract
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Restoration Measures: Technical interventions underway to stabilize refinery operations
This incident underscores the importance of stringent quality checks in upstream sourcing and the operational risks tied to crude composition.
Sources: Economic Times, ScanX News