Business Update27 Oct 2025, 08:41 pm
Hindustan Petroleum Corporation Ltd Faces Operational Issues Due to High Salt/Chloride Content Crude at Mumbai Refinery Unit
AI Summary
Hindustan Petroleum Corporation Ltd (HPCL) has encountered operational issues, including corrosion in downstream units and suboptimal outputs, while processing a part of the 54.6 TMT of crude oil sourced from the B-80 Mumbai Offshore oilfield of Hindustan Oil Exploration Company Limited (HOECL) in October 2025. The crude oil in question has been identified to have very high salt and chloride content, which is beyond the contractual terms of the Crude Offtake Sales Agreement with the supplier. HPCL has taken up the matter with the supplier and is pursuing claims and damages in line with the contractual terms. The company is also taking necessary steps to return to normal operations at the earliest.
Key Highlights
- Hindustan Petroleum Corporation Ltd (HPCL) faces operational issues at its Mumbai Refinery Unit
- High salt/chloride content crude oil sourced from Hindustan Oil Exploration Company Limited (HOECL) causing the issues
- HPCL identifies potential reasons as very high salt and chloride content beyond contractual terms
- Company takes up matter with supplier and pursues claims and damages as per contractual terms
- HPCL takes necessary steps to return to normal operations at the earliest