India’s Hindustan Petroleum Corporation (HPCL) has purchased two million barrels of Nigerian crude oil for its Rajasthan refinery, highlighting the growing role of West African crude in supplying Asia’s expanding refining sector. The cargo, comprising Nigeria’s Okwuibome and Utapate grades, will support operations at HPCL’s newly commissioned refinery as it diversifies crude supplies from multiple international sources while increasing processing capacity.
Key Overview
- HPCL purchased two million barrels of Nigerian crude through Glencore.
- The cargo includes Nigeria’s Okwuibome and Utapate crude grades.
- The shipment is expected to arrive at the HPCL Rajasthan Refinery in late September.
- The refinery has a processing capacity of 180,000 barrels per day.
- Utapate is one of Nigeria’s newest export crude grades, introduced in July 2024.
HPCL Expands Nigerian Crude Purchases
India’s Hindustan Petroleum Corporation (HPCL) has purchased two million barrels of Nigerian crude oil for its newly commissioned Rajasthan refinery, adding another Asian destination for Nigeria’s growing crude exports.
The purchase, made through commodity trader Glencore following a tender, includes Nigeria’s Okwuibome and Utapate crude grades. The cargo is scheduled to arrive in late September at the 180,000-barrel-a-day HPCL Rajasthan Refinery.
Neither HPCL nor Glencore commented on the transaction, consistent with industry practice where companies typically do not disclose details of individual crude oil trades because pricing and volume information is considered commercially sensitive.
Refinery Continues Diversifying Crude Supply
The latest purchase forms part of the refinery’s broader strategy of sourcing crude from multiple producing regions as it ramps up operations.
According to market sources, early shipments to the facility have included crude from Azerbaijan’s Azeri grade, Libya’s Mesla grade, Angola’s Nemba grade and Nigerian crude, demonstrating the refinery’s flexibility in processing different crude blends.
The refinery began receiving crude late last year before commencing crude distillation operations in January.
The integrated refinery and petrochemical complex has an annual processing capacity of 9 million tonnes and was developed at an estimated cost of approximately ₹73,000 crore ($8.7 billion).
HPCL owns a 74% stake in the refinery, while the Rajasthan state government holds the remaining 26%.
The facility is designed to process a combination of imported crude oil alongside domestically produced Rajasthan crude, strengthening HPCL’s refining capacity.
Utapate Strengthens Nigeria’s Export Portfolio
The transaction also highlights the growing international presence of Nigeria’s Utapate crude grade, one of the country’s newest export blends.
NNPC Limited and its partner, Sterling Oil Exploration & Energy Production Company (SEEPCO), introduced the Utapate crude oil blend in July 2024 following the shipment of its first 950,000 barrels cargo to Spain.
Utapate is produced from the Utapate field in OML 13 in Akwa Ibom State and is considered similar in quality to Nigeria’s Nembe crude grade.
According to the available information, the crude blend has a low sulphur content of about 0.0655% and a relatively low carbon footprint resulting from flare gas elimination, characteristics that have increased its attractiveness to international refiners seeking cleaner crude grades.
The grade has also become increasingly important within Nigeria’s offshore production portfolio as the country seeks to expand export opportunities.
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Growing Asian Demand for West African Crude
The latest purchase further strengthens trade links between Nigeria and Asian refiners, with West African crude continuing to attract buyers seeking diverse crude supplies for modern refining facilities.
For HPCL, the acquisition supports the continued commissioning and optimisation of its Rajasthan refinery by providing access to multiple crude grades suitable for processing at the new complex.
For Nigeria, the inclusion of both Okwuibome and Utapate grades in the transaction demonstrates continued international demand for its expanding range of export crude blends.
Outlook
HPCL’s latest purchase underscores the increasing role of Nigerian crude in supplying Asia’s expanding refining sector as new processing capacity comes online. As the Rajasthan refinery continues ramping up operations and optimising its crude slate, maintaining a diversified sourcing strategy across multiple producing regions is expected to remain a key part of its procurement approach. The addition of Nigeria’s Okwuibome and Utapate grades reflects the refinery’s flexibility in processing different crude blends while supporting operational efficiency. For Nigeria, the transaction highlights the growing international recognition of its newer export grades, particularly Utapate, which is gradually strengthening its position within the country’s offshore production portfolio. As Asian refiners continue seeking reliable and high-quality crude supplies, stronger trade links between Africa and Asia could create additional opportunities for Nigerian exports while reinforcing the country’s role as an important supplier to global energy markets.
FAQs
1. What crude oil did HPCL purchase?
HPCL purchased two million barrels of Nigeria’s Okwuibome and Utapate crude grades through Glencore.
2. Where will the crude be processed?
The cargo will be processed at the HPCL Rajasthan Refinery (HRRL).
3. When will the shipment arrive?
The crude cargo is expected to arrive at the refinery in late September.
4. What is Utapate crude?
Utapate is one of Nigeria’s newest export crude grades. It was introduced in July 2024 by NNPC Limited and SEEPCO, and is produced from the Utapate field in OML 13 in Akwa Ibom State.
5. Who owns the HPCL Rajasthan Refinery?
Hindustan Petroleum Corporation owns 74% of the refinery, while the Rajasthan state government holds the remaining 26% stake.
Sources: Business Insider Africa, Businessfront, Nairametrics
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