HPCL Secures Nigerian Crude Amid Strait of Hormuz Bottleneck

India's state-owned refiner Hindustan Petroleum Corporation Limited (HPCL) has secured a deal to purchase 2 million barrels of Nigerian crude oil. The move aims to offset losses due to supply disruptions from the Middle East, specifically the Strait of Hormuz bottleneck.

The Okwuibome and Utapate crudes will be sourced from commodity trader Glencore through a tender process. These Nigerian crude oils will feed into HPCL's refinery in Rajasthan, which has a capacity of 180,000 barrels per day (bpd) and is owned by Hindustan Petroleum with a 74% stake.

The decision comes as India struggles to replace the lost supply from the Middle East. The country has significantly increased imports of Russian crude oil in recent months, but these aren't enough to meet demand. Indian refiners are now looking for alternative sources, including Angola and Venezuela, to avoid relying on Middle Eastern supplies.

HPCL managing director Vikas Kaushal stated that the company 'hardly got anything' from its term contracts with Middle Eastern suppliers in the first quarter due to supply chain disruptions caused by the Strait of Hormuz bottleneck.