Hindustan Petroleum Corporation Limited (HPCL) is facing operational challenges at its Mumbai Refinery. A recently processed crude oil parcel, sourced through auction on August 25, 2025, is causing corrosion in downstream units and suboptimal production. This is due to unexpectedly high salt and chloride content. HPCL is addressing the issues with the supplier to seek resolution and damages. Normal operations are expected to resume after necessary steps are taken.
Mumbai Refinery Faces Processing Issues
Hindustan Petroleum (HPCL) has reported operational difficulties related to the processing of a specific crude oil parcel at its Mumbai Refinery. The issue stems from a recent batch of crude oil that caused complications during the refining process. The company is taking steps to resolve the situation and restore normal production levels.
Details of the Crude Oil Issue
The crude oil in question was sourced through an auction on August 25, 2025, and processing began in October 2025. It was found to contain unexpectedly high levels of salt and chloride, leading to corrosion in downstream units. This resulted in suboptimal outputs and a reduction in production volume. The crude oil originated from the B-80 Mumbai Offshore oilfield of Hindustan Oil Exploration Company Limited (HOECL), with HPCL having sourced 54.6 TMT of the crude oil. The company has engaged with the supplier to address the problem and is pursuing claims and damages as per the contractual terms.
Steps Towards Resolution
HPCL is committed to returning the Mumbai Refinery to normal operational status as quickly as possible. The company is taking the necessary steps to mitigate the impact of the contaminated crude oil and restore production levels.
Source: BSE
