State-owned Mangalore Refinery and Petrochemicals Ltd (MRPL) has, for the first time, instructed crude oil suppliers to avoid shipping cargoes through the Red Sea and the Strait of Hormuz in its latest spot import tender, citing escalating geopolitical tensions in the Middle East.
According to the tender document, MRPL is seeking up to 1 million barrels of crude oil on a delivered basis for the period between August 25 and September 6. The tender specifically states that “crude loading/transit via Red Sea route or SoH (Strait of Hormuz) to be avoided.”
The move follows increasing security concerns in the region after attacks on shipping in the Red Sea by Yemen-based Houthi militants and continued disruptions to oil flows through the Strait of Hormuz amid the ongoing U.S.-Iran conflict.
Industry sources said MRPL has adopted a precautionary approach to safeguard its crude supply chain and minimize the risk of potential disruptions along two of the world’s most critical maritime oil trade routes. The source added that the routing restriction is likely to remain in future spot tenders if the security situation in the Middle East does not improve.
MRPL, a subsidiary of Oil and Natural Gas Corporation (ONGC), operates a 300,000 barrels-per-day refinery at Mangaluru in Karnataka. The company had not awarded its previous spot crude import tender.
The latest tender marks the first instance of an Indian refiner formally incorporating a clause restricting shipments through the Red Sea and the Strait of Hormuz in its spot crude procurement process.