Indian refiners are actively diversifying their crude sourcing strategies as Middle East supply chains face significant disruptions. According to Reuters, state-controlled Mangalore Refinery and Petrochemicals Limited (MRPL) has acquired about 1 million barrels of crude oil from Oman via tender at a premium of some $3 per barrel to Dated Brent from Mitsui & Co Energy Trading Singapore. Meanwhile, state-run Indian Oil Corporation, the largest refiner by capacity, has purchased 4 million barrels of West African crude from Chevron, including Nemba, Saxi Batuque, and Clov grades from Angola, and Congo's Djeno crude. The diversification strategy comes as term supplies from the Middle East remain choked by shipping constraints at the Strait of Hormuz and Bab el-Mandeb since the beginning of the Iran war, forcing Indian refiners to seek alternatives from producers farther away.
India's state-run Hindustan Petroleum Corp has secured 2 million barrels of Nigerian crude oil through a tender for September delivery, according to latest trade sources. As reported by Reuters, the company purchased 1 million barrels each of Nigerian grades Okwuibome and Utapate from trader Glencore for its 180,000 barrels per day Rajasthan refinery. The significant purchase is scheduled for delivery in late September, demonstrating HPCL's continued focus on securing adequate crude oil supplies for its refinery operations as it ramps up operations at the newly commissioned facility. This latest acquisition represents part of India's broader strategy to offset lost Middle East supply with deliveries from producers that do not need to transit any of the Middle East chokepoints.
The ₹73,000 crore ($8.7 billion) integrated refinery and petrochemical complex has an annual processing capacity of 9 million tonnes. HPCL owns a 74% stake in the facility, while the Rajasthan state government holds the remaining 26%. The facility is designed to process a combination of imported crude oil alongside domestically produced Rajasthan crude, strengthening HPCL's refining capacity. According to market sources, early shipments to the facility have included crude from Azerbaijan's Azeri grade, Libya's Mesla grade, Angola's Nemba grade and Nigerian crude, demonstrating the refinery's flexibility in processing different crude blends.
The transaction highlights the growing international presence of Nigeria's Utapate crude grade, one of the country's newest export blends. NNPC Limited and its partner Sterling Oil Exploration & Energy Production Company (SEEPCO) introduced the Utapate crude oil blend in July 2024 following the shipment of its first 950,000 barrels cargo to Spain. Utapate is produced from the Utapate field in OML 13 in Akwa Ibom State and is considered similar in quality to Nigeria's Nembe crude grade. The grade has a low sulphur content of about 0.0655% and a relatively low carbon footprint resulting from flare gas elimination, characteristics that have increased its attractiveness to international refiners seeking cleaner crude grades. In April 2026, when Nigeria's combined crude oil and condensate production averaged 1.663 million barrels per day, Utapate contributed 1.78 million barrels during the month, placing it among the country's leading offshore-producing assets.
The latest procurement comes as Nigeria continues to record gradual improvements in crude production. Data from the Organisation of the Petroleum Exporting Countries (OPEC) showed that the country's average daily crude oil production rose to 1.530 million barrels per day in May 2026 from 1.489 million barrels per day in April. The production recovery has coincided with mixed financial results at NNPC Limited. The national oil company reported a profit after tax of ₦2.28 trillion in the first half of 2026, representing a 35.4% decline from the ₦3.53 trillion posted during the corresponding period of 2025. Despite the year-on-year drop, the company remained profitable throughout the period, with monthly earnings improving from March and reaching a six-month high of ₦535 billion in June. The latest procurement reinforces the growing acceptance of Nigeria's newer crude grades in international markets while highlighting the continued role of export demand in supporting the country's oil production recovery and revenue outlook.
