Indian Oil Corporation Expands Investments and Russian Oil Processing

Image Source: Business Standard

Indian Oil Corporation has outlined its financial and operational strategy for the upcoming fiscal year, emphasizing increased capital expenditure and a growing reliance on Russian crude oil. The company’s latest disclosures highlight its commitment to refining capacity expansion and securing stable crude supplies.

Investment and Expansion Plans
- Indian Oil Corporation has set its capital expenditure target for FY26 at 335 billion rupees, focusing on refinery upgrades and infrastructure development
- The company is advancing expansion projects at its Panipat, Gujarat, and Barauni refineries, aiming to enhance processing capabilities and efficiency
- Refining capacity is projected to exceed 70 million tonnes by March 2026, reinforcing its position as India’s leading oil marketing company

Russian Oil Procurement and Market Adjustments
- Russian crude oil accounted for 14 percent of Indian Oil Corporation’s total processing volume in the March quarter, reflecting a steady intake despite global market fluctuations
- The availability of Russian oil has increased, with the company securing stable supplies through diversified procurement channels
- Discounts on Russian crude have narrowed to approximately 1 to 1.5 dollars per barrel, compared to 3 dollars per barrel in previous months

Strategic Outlook and Industry Impact
- Indian Oil Corporation continues to explore alternative crude sources, including West Asia and Africa, to maintain cost efficiency and supply security
- The company remains engaged in discussions regarding the impact of new sanctions on Russian oil imports, assessing potential shifts in procurement strategies
- Analysts anticipate that refining margins and marketing strategies will evolve in response to global energy trends and regulatory developments

Indian Oil Corporation’s latest financial and operational updates underscore its focus on long-term growth, refining expansion, and strategic crude sourcing. As market dynamics shift, the company aims to maintain stability and competitiveness in the energy sector.

Source: Financial Express, The Hindu BusinessLine, Reuters, Indian Oil Corporation