Hindustan Petroleum Corporation Limited (HPCL) is facing operational challenges at its Mumbai Refinery. These issues stem from processing a crude oil parcel sourced in October 2025, which had an unusually high salt and chloride content. This has led to corrosion in downstream units and a reduction in overall production. HPCL is currently in discussions with the supplier to address claims and damages related to the off-spec crude.
Operational Problems at Mumbai Refinery
Hindustan Petroleum Corporation Limited (HPCL) has encountered operational challenges at its Mumbai Refinery. These issues are related to the processing of a specific crude oil parcel with elevated salt and chloride levels.
Crude Oil Sourcing and Processing
The crude oil in question, amounting to 54.6 MT, was sourced from the B-80 Mumbai Offshore oilfield of Hindustan Oil Exploration Company Limited (HOECL). It was acquired through an auction dated August 25, 2025, and subsequently processed in October 2025.
Impact on Refinery Operations
The high salt/chloride content in the crude has resulted in corrosion within the refinery’s downstream units. This has led to sub-optimal production outputs and necessitated a reduction in production levels. HPCL has initiated discussions with the supplier to address the issue and pursue claims for damages under the existing crude oil offtake sales agreement.
Next Steps
HPCL is taking the necessary steps to restore normal operations at the Mumbai Refinery as quickly as possible.
Source: BSE
