Hindustan Petroleum Corporation Limited (HPCL) has reported a significant operational challenge at its Mumbai Refinery, stemming from the processing of crude oil sourced from Hindustan Oil Exploration Company Limited’s (HOECL) B-80 Mumbai Offshore oilfield.
The crude, part of a 54.6 TMT batch procured via auction on August 25, 2025, has been identified as the cause of corrosion and other operational difficulties in the refinery’s downstream units. Initial assessments conducted in October 2025 revealed that this batch of crude oil contains unusually high levels of salt and chloride, exceeding the specifications agreed upon in the Crude Offtake Sales Agreement with HOECL.
The adverse chemical composition of the crude has led to suboptimal outputs and necessitated a scale-down in production, impacting the overall efficiency of the refinery operations. HPCL has proactively addressed the issue by engaging with HOECL to discuss the ramifications and seek compensation as stipulated under the terms of their agreement.
The matter of claims and damages is currently being pursued in alignment with the contractual obligations. In response to the situation, HPCL has also informed its stakeholders and updated the Exchange about the operational disruptions and the steps being taken to mitigate the impact.
The company is committed to resolving the issues swiftly and has already initiated processes to restore normal operations at the Mumbai Refinery.
