Mangalore Refinery and Petrochemicals Ltd (MRPL) is exploring the purchase of Venezuelan crude oil as it stops importing Russian crude to comply with Western sanctions, the company’s head of finance, Devendra Kumar, said on Monday.
The state-run refiner, which operates a 500,000-barrel-per-day refinery in Karnataka, exports around 40% of its refined fuel output. Kumar emphasized that MRPL is in “strict compliance with all sanctions” and currently has no Russian oil imports.
The move comes after the U.S. sanctioned Russia’s top oil producers, Rosneft and Lukoil, last October, requiring companies to wind down dealings by November 21. The European Union will also bar fuel from refineries processing Russian crude 60 days before the bill of lading from January 21.
Despite halting Russian imports, MRPL said higher margins on refined fuel exports are offsetting the impact. About 40% of the company’s crude needs are met through Middle Eastern supplies, alongside spot market and domestic sourcing.
Kumar noted that MRPL is considering Venezuelan oil if commercial terms, including freight costs, are favourable. Other Indian refiners, including Reliance Industries, Indian Oil Corporation, and Hindustan Petroleum, are also eyeing Venezuelan crude.
To enhance profits, MRPL is increasingly focusing on direct retail sales rather than selling refined fuels to other refiners.
