MRPL Taps Precautionary Measures Amid Escalating Disruptions in Key Oil Shipping Routes

Mangalore Refinery and Petrochemicals Ltd (MRPL), an Indian state-run refiner, has altered its spot crude purchases by instructing suppliers to avoid the Red Sea and the Strait of Hormuz due to escalating disruptions in these key oil shipping routes.

The refinery's decision is reflected in a recent tender for up to 1 million barrels of crude to be delivered between August 25 and September 6, which includes a new condition stating that 'crude loading/transit via Red Sea route or SoH to be avoided.'

This marks the first time an Indian refiner has specified such a requirement in a spot crude import tender. MRPL, a subsidiary of state-run Oil and Natural Gas Corp (ONGC), operates a 300,000-barrels-per-day refinery in Karnataka.

The inclusion of this clause reflects supply concerns as tensions continue to affect shipping through the Red Sea and the Strait of Hormuz. According to a source cited by Reuters, MRPL has adopted a 'precautionary view' to minimize the risk of supply disruptions.