HPCL mumbai refinery faces issues from high salt crude oil

Hindustan Petroleum Corporation Limited (HPCL) announced on October 27, 2025, that it is facing operational and yield issues at its Mumbai Refinery Unit. These problems stem from the processing of a crude oil parcel with high salt and chloride content, sourced from Hindustan Oil Exploration Company Limited (HOECL) through an auction dated August 25, 2025.

The crude oil, amounting to 54.6 MT, was received from the B-80 Mumbai Offshore oilfield. Processing a portion of this crude in October 2025 led to corrosion in downstream units, suboptimal outputs, and reduced production, with the high salt and chloride content found to be beyond contractual terms.

HPCL has initiated discussions with HOECL to pursue claims and damages in line with the contractual terms and is taking necessary steps to restore normal operations at the earliest.