Nayara Seeks Government Aid Amid EU Sanctions
OIL & GAS

Nayara Seeks Government Aid Amid EU Sanctions

Russian-backed Indian refiner Nayara Energy is seeking assistance from the Indian government to source equipment and materials necessary for its scheduled refinery maintenance, as European Union sanctions have made it difficult to obtain key items, sources familiar with the matter said.
The private company has approached the Centre for High Technology, an advisory body under India’s oil ministry, requesting help in sourcing specialised equipment, catalysts, and other raw materials. Nayara and the Centre did not immediately respond to requests for comment.
Nayara, majority-owned by Russian entities including Rosneft, operates a 400,000 barrels per day refinery at Vadinar in western India, which is slated to shut down for maintenance in February. Refineries typically undergo major maintenance every four years, lasting 30 to 50 days, to ensure operational safety, improve yields, and comply with regulatory mandates. Nayara last conducted maintenance in November 2022.
Sources indicated that while the shutdown can be delayed by a few months, it cannot be postponed beyond four to six months. Nayara currently processes only Russian crude after suppliers from Iraq and Saudi Arabia halted deliveries due to payment challenges arising from the EU sanctions imposed in July.
For the maintenance, the company requires catalysts for units such as hydrotreaters, hydrocrackers, and reformers. While some catalysts can be procured from Russia or China, others are supplied only by Western firms, complicating the procurement process. Nayara also requires specialised heavy equipment, including compressors, pumps, and valves, which are increasingly difficult to secure under the current restrictions.
Former Indian Oil Corp head of refineries B.N. Bankapur noted that while domestic, Russian, or Chinese catalysts could be alternatives, their compatibility must be carefully verified to ensure they do not negatively affect yields or product quality. 

Russian-backed Indian refiner Nayara Energy is seeking assistance from the Indian government to source equipment and materials necessary for its scheduled refinery maintenance, as European Union sanctions have made it difficult to obtain key items, sources familiar with the matter said.The private company has approached the Centre for High Technology, an advisory body under India’s oil ministry, requesting help in sourcing specialised equipment, catalysts, and other raw materials. Nayara and the Centre did not immediately respond to requests for comment.Nayara, majority-owned by Russian entities including Rosneft, operates a 400,000 barrels per day refinery at Vadinar in western India, which is slated to shut down for maintenance in February. Refineries typically undergo major maintenance every four years, lasting 30 to 50 days, to ensure operational safety, improve yields, and comply with regulatory mandates. Nayara last conducted maintenance in November 2022.Sources indicated that while the shutdown can be delayed by a few months, it cannot be postponed beyond four to six months. Nayara currently processes only Russian crude after suppliers from Iraq and Saudi Arabia halted deliveries due to payment challenges arising from the EU sanctions imposed in July.For the maintenance, the company requires catalysts for units such as hydrotreaters, hydrocrackers, and reformers. While some catalysts can be procured from Russia or China, others are supplied only by Western firms, complicating the procurement process. Nayara also requires specialised heavy equipment, including compressors, pumps, and valves, which are increasingly difficult to secure under the current restrictions.Former Indian Oil Corp head of refineries B.N. Bankapur noted that while domestic, Russian, or Chinese catalysts could be alternatives, their compatibility must be carefully verified to ensure they do not negatively affect yields or product quality. 

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