HPCL Mumbai refinery faces operational issues from high salt crude

Hindustan Petroleum Corporation Limited (HPCL) has informed stock exchanges about operational and yield issues at its Mumbai Refinery. These problems stem from processing a crude oil parcel sourced from the B-80 Mumbai Offshore oilfield of Hindustan Oil Exploration Company Limited (HOECL). The consignment, totaling 54.6 TMT, was acquired via an auction on August 25, 2025.

Processing a portion of this crude in October 2025 led to operational disruptions, including corrosion in downstream units and suboptimal outputs, forcing a reduction in production. HPCL attributes these issues to the crude oil's exceptionally high salt and chloride content, which it states is beyond the contractual terms of the crude offtake sales agreement with the supplier.

HPCL has initiated discussions with HOECL to address these issues and intends to pursue claims and damages in line with the contractual agreement. The company has assured stakeholders that necessary steps are being taken to restore normal operations at the Mumbai Refinery as quickly as possible.