Hindustan Petroleum Corporation (HPCL) had sourced 54.6 MT of crude oil from the B-80 Mumbai Offshore oilfield of Hindustan Oil Exploration Company (HOECL), for processing at its Mumbai Refinery through auction dated 25 August 2025.
A part of the said crude oil received subsequently was processed in October 2025 and found to be causing operational issues including corrosion in downstream units, yielding suboptimal outputs and turned down production. Potential reasons are the very high salt and chloride content in the crude oil, which are beyond contractual terms of Crude Offtake Sales Agreement with Supplier. Matter has been taken up with the supplier and claims and damages in line with the contractual terms would be pursued.
The Company has taken the necessary steps to return to normal operations at the earliest.