MRPL Eyes Venezuelan Crude as It Stops Russian Oil Imports to Follow Sanctions
Mangalore Refinery and Petrochemicals Ltd (MRPL) is exploring purchases of Venezuelan crude oil after halting imports of Russian oil to ensure compliance with Western sanctions, the company’s finance head Devendra Kumar said on Monday. Speaking during an analyst call, Kumar said MRPL is in “strict compliance with all sanctions in place” and confirmed that the refiner is currently not importing any Russian crude.
The state-run refiner operates a 500,000-barrel-per-day refinery in Karnataka and exports around 40% of its refined fuel output. Kumar noted that improved margins on refined fuel exports are helping offset the loss of discounted Russian crude, adding that MRPL does not expect any near-term disruptions to its exports of finished products. MRPL meets around 40% of its crude requirements through Middle East supplies, while also sourcing from spot markets and processing domestic oil.
Kumar said MRPL is actively considering Venezuelan crude if commercial terms, including freight rates, are favourable. Other Indian refiners such as Reliance Industries, Indian Oil Corporation, and Hindustan Petroleum are also evaluating Venezuelan oil purchases. Meanwhile, MRPL is shifting strategy to boost profits by expanding direct retail fuel sales, aiming to grow its network to 500 outlets within three years from the current 200 and reaching 1,000 fuel stations within five years.
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