India’s Hindustan Petroleum Corporation (HPCL) has reported operational issues at its Mumbai refinery after processing crude oil sourced from the B-80 Mumbai offshore oilfield, operated by Hindustan Oil Exploration Company (HOECL).
HPCL had sourced 54,600 tonnes of crude oil from the field through an auction held on August 25, 2025.
According to HPCL, a part of the crude oil received was processed in October 2025 and was found to be causing problems, including corrosion in downstream units, yielding suboptimal outputs, and forcing a reduction in production.
The company stated that potential reasons include very high salt and chloride content in the crude oil, which are beyond the contractual terms agreed upon with the supplier.
HPCL confirmed that the matter has been taken up with HOECL, and it intends to pursue claims and damages in line with the contractual terms of the crude offtake sales agreement.
The company also stated that it has taken the necessary steps to return refinery operations to normal as soon as possible.
