HPCL Mumbai Refinery Hit by High-Salt Crude Disruption

Hindustan Petroleum Corporation Ltd (HPCL) has reported significant operational issues at its Mumbai refinery after processing crude oil with exceptionally high salt and chloride content, sourced from Hindustan Oil Exploration Co.’s B-80 offshore field. The contaminated crude is said to have caused corrosion and sub-optimal output in downstream units.

Key Facts

HPCL’s statement to the stock exchange noted the crude's salt and chloride levels exceeded contractual specifications, leading to downstream unit damage and production losses.

The issue prompted HPCL to issue rare fuel import tenders—seeking 34,000 tons of gasoline and 65,000 tons of gasoil for early November delivery to Mundra port.

HPCL plans to seek damages from HOECL under the Crude Offtake Sales Agreement due to contract breach.

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