BPCL Makes First Venezuelan Oil Purchase As HMEL Returns
OIL & GAS

BPCL Makes First Venezuelan Oil Purchase As HMEL Returns

State-run Bharat Petroleum Corporation Limited made its first purchase of Venezuelan crude and HPCL Mittal Energy resumed Venezuelan procurement after a two-year hiatus, industry sources say. Both refiners acquired one million barrels (one mn) each of Venezuela's heavy Merey crude in transactions arranged by commodities trader Vitol. The cargoes are expected to be co-loaded on a very large crude carrier to optimise freight costs. The moves raise India's Venezuelan imports to at least six mn barrels through April 2026.

The strategic purchases form part of a broader adjustment of crude supply, as refiners reportedly scale back purchases of Russian oil while New Delhi pursues an interim trade understanding with the United States. HMEL last imported Venezuelan crude in February 2024 before this resumption. Market participants note that discounted heavy grades from Venezuela present economically attractive options amid shifting geopolitics. Traders view the transactions as pragmatic diversification rather than a long term commitment.

BPCL plans to discharge part of its shipment at Kochi port in Kerala for processing at its 310,000 barrels per day refinery and at Sikka port in Gujarat for its 156,000 barrels per day Bina facility. HMEL is expected to route its cargo via Mundra port in Gujarat for delivery to its 226,000 barrels per day Bathinda refinery. Co-loading on a single vessel is intended to reduce voyage costs and improve logistics efficiency. Operators will allocate feedstocks to match refinery configurations for heavy crude processing.

Leading Indian refiners including Reliance Industries and Indian Oil Corporation have previously sourced Venezuelan crude at substantial discounts to global benchmarks, demonstrating established commercial channels. The latest purchases by BPCL and HMEL reflect a pragmatic response to available discounts and a desire to broaden supplier options. Observers say the transactions will be monitored for their impact on overall import patterns and on relations with other crude suppliers. Further shipments could follow if pricing and logistics remain favourable.

State-run Bharat Petroleum Corporation Limited made its first purchase of Venezuelan crude and HPCL Mittal Energy resumed Venezuelan procurement after a two-year hiatus, industry sources say. Both refiners acquired one million barrels (one mn) each of Venezuela's heavy Merey crude in transactions arranged by commodities trader Vitol. The cargoes are expected to be co-loaded on a very large crude carrier to optimise freight costs. The moves raise India's Venezuelan imports to at least six mn barrels through April 2026. The strategic purchases form part of a broader adjustment of crude supply, as refiners reportedly scale back purchases of Russian oil while New Delhi pursues an interim trade understanding with the United States. HMEL last imported Venezuelan crude in February 2024 before this resumption. Market participants note that discounted heavy grades from Venezuela present economically attractive options amid shifting geopolitics. Traders view the transactions as pragmatic diversification rather than a long term commitment. BPCL plans to discharge part of its shipment at Kochi port in Kerala for processing at its 310,000 barrels per day refinery and at Sikka port in Gujarat for its 156,000 barrels per day Bina facility. HMEL is expected to route its cargo via Mundra port in Gujarat for delivery to its 226,000 barrels per day Bathinda refinery. Co-loading on a single vessel is intended to reduce voyage costs and improve logistics efficiency. Operators will allocate feedstocks to match refinery configurations for heavy crude processing. Leading Indian refiners including Reliance Industries and Indian Oil Corporation have previously sourced Venezuelan crude at substantial discounts to global benchmarks, demonstrating established commercial channels. The latest purchases by BPCL and HMEL reflect a pragmatic response to available discounts and a desire to broaden supplier options. Observers say the transactions will be monitored for their impact on overall import patterns and on relations with other crude suppliers. Further shipments could follow if pricing and logistics remain favourable.

Related Stories

Gold Stories

Next Story
Resources

Schindler named among Forbes’ World’s Best Employers 2026

Schindler has been named among Forbes’ World’s Best Employers 2026, a global ranking recognising companies for their workplace environments.Compiled by Forbes in partnership with Statista, the ranking is based on independent employee feedback, including whether employees would recommend their organisation to friends and family.The company said the recognition reflected its focus on creating a workplace where employees can develop their expertise and build careers. ..

Next Story
Infrastructure Urban

India needs an export-execution mindset: Vishesh Jain

Interview with Vishesh Jain, Founder & CEO, EximpleWhat gaps in India’s global trade ecosystem led you to build Eximple, and what problem did you see businesses struggling with most?Eximple came out of a problem that all three founders had seen from different choke points in the trade ecosystem. India has millions of MSMEs and manufacturers, and many of them can make products that are genuinely competitive on quality. Yet only a small fraction is able to build meaningful international businesses. In our experience, the gap is usually not manufacturing capability; it is the ability to exe..

Next Story
Building Material

Nuvoco reports 13.5% revenue growth in Q2 FY27

Nuvoco Vistas Corp. Ltd. reported consolidated revenue of Rs 27.9 billion for Q2 FY27, up 13.5% year on year. Cement sales volume rose 9% to 4.7 million tonnes (MMT), while EBITDA increased 11% to Rs 4.11 billion.The company said it began its cement operations in 2014 with a 2.3 MMT per annum (MMTPA) operation at Nimbol. It now aims to reach 35 MMTPA of cement capacity by FY28, nearly 15 times its initial capacity. Its portfolio spans cement, ready-mix concrete and modern building materials.On sustainability and cost efficiency, Nuvoco partnered with CleanMax for a 46.4 MW wind-solar hybrid re..

Advertisement

Subscribe to Our Newsletter

Get daily newsletters around different themes from Construction world.

STAY CONNECTED

Advertisement

SPECIAL OFFER
QR Code