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HPCL to Assess Venezuelan Crude Processing
OIL & GAS

HPCL to Assess Venezuelan Crude Processing

Hindustan Petroleum Corporation Limited is evaluating the possibility of processing Venezuelan crude oil at its refineries, as recent infrastructure upgrades improve its ability to handle heavier and more complex crude grades.

Speaking after an earnings call, HPCL Chairman and Managing Director Vikas Kaushal said the company could process heavy Venezuelan crude following the installation of a residue upgradation facility at its Visakhapatnam refinery and the commissioning of its greenfield refinery in Barmer, Rajasthan. He noted that Venezuelan crude is difficult to process but that the new assets provide an opportunity to assess its feasibility.

The residue upgradation facility at the Visakhapatnam refinery is expected to convert around 93 per cent of low-value bottom-of-the-barrel oils into high-value products, significantly improving operational flexibility and refining efficiency.

Several Indian refiners, including HPCL, have historically struggled to process Venezuelan crude due to its extra-heavy and highly acidic nature. However, recent technological upgrades at HPCL’s facilities could enable the company to handle such challenging crude blends more effectively.

According to Reuters, HPCL is exploring Venezuelan crude imports for the first time as part of a broader strategy to increase heavy oil processing and diversify crude sourcing. The move follows the addition of new processing facilities and the imminent start of operations at the Barmer refinery, which is expected to strengthen HPCL’s position among state-run refiners in India.

HPCL’s director of finance, Rajneesh Narang, said Venezuelan crude is characterised by high viscosity and acidity, adding that the company would evaluate the crude whenever it becomes available.

Historically, large-scale processing of Venezuelan crude in India has been concentrated at Reliance Industries’ Jamnagar complex and Nayara Energy’s Vadinar refinery, both configured to handle high-sulphur heavy crudes. Public-sector refineries have had limited capacity to process such grades due to configuration constraints and operational challenges.

Beyond crude diversification, HPCL said it plans to focus on consumer-facing businesses, including marketing and the revamping of retail fuel outlets, as part of its broader growth strategy.

Hindustan Petroleum Corporation Limited is evaluating the possibility of processing Venezuelan crude oil at its refineries, as recent infrastructure upgrades improve its ability to handle heavier and more complex crude grades. Speaking after an earnings call, HPCL Chairman and Managing Director Vikas Kaushal said the company could process heavy Venezuelan crude following the installation of a residue upgradation facility at its Visakhapatnam refinery and the commissioning of its greenfield refinery in Barmer, Rajasthan. He noted that Venezuelan crude is difficult to process but that the new assets provide an opportunity to assess its feasibility. The residue upgradation facility at the Visakhapatnam refinery is expected to convert around 93 per cent of low-value bottom-of-the-barrel oils into high-value products, significantly improving operational flexibility and refining efficiency. Several Indian refiners, including HPCL, have historically struggled to process Venezuelan crude due to its extra-heavy and highly acidic nature. However, recent technological upgrades at HPCL’s facilities could enable the company to handle such challenging crude blends more effectively. According to Reuters, HPCL is exploring Venezuelan crude imports for the first time as part of a broader strategy to increase heavy oil processing and diversify crude sourcing. The move follows the addition of new processing facilities and the imminent start of operations at the Barmer refinery, which is expected to strengthen HPCL’s position among state-run refiners in India. HPCL’s director of finance, Rajneesh Narang, said Venezuelan crude is characterised by high viscosity and acidity, adding that the company would evaluate the crude whenever it becomes available. Historically, large-scale processing of Venezuelan crude in India has been concentrated at Reliance Industries’ Jamnagar complex and Nayara Energy’s Vadinar refinery, both configured to handle high-sulphur heavy crudes. Public-sector refineries have had limited capacity to process such grades due to configuration constraints and operational challenges. Beyond crude diversification, HPCL said it plans to focus on consumer-facing businesses, including marketing and the revamping of retail fuel outlets, as part of its broader growth strategy.

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