Saudi Aramco and Iraq's SOMO have reportedly suspended crude oil deliveries to Indian refiner Nayara, according to several sources.
In a significant shift, Nayara Energy, a major refiner controlling about 8% of India's 5.2 million barrel-per-day refining capacity, has been compelled to adjust its crude oil import sources due to EU sanctions and the halting of supplies from Saudi Arabia and Iraq.
Last month, Nayara Energy did not receive any shipments from Iraq or Saudi Arabia, according to data from Kpler and LSEG shipping. This halt in supply is attributed to sanctions imposed on a Russian-backed refiner, which has forced Nayara Energy to seek alternative sources.
In August, Nayara Energy relied solely on Russia for its crude oil imports, with current supplies coming directly from Rosneft, as confirmed by a Russian Embassy official in New Delhi. This shift in sourcing strategies has been further highlighted in a report titled "Sanctions-hit Indian refiner Nayara turns to dark fleet, tanker data shows."
The change in leadership at Nayara Energy has also been noteworthy. The CEO of the company resigned in July, and last week, the company announced the appointment of a senior executive from Azerbaijan's national oil company SOCAR, Teymur Abasguliyev, as its new CEO, with an office start in September 2025. However, for the interim period, Sergey Denisov has taken over as the CEO.
Despite these challenges, Nayara Energy's 400,000 barrel-per-day refinery at Vadinar has been operating at about 70-80% capacity. The refinery has been experiencing difficulties in selling its products, which has led to its reduced operation.
The most recent cargo of Basra crude from Iraq's SOMO was discharged for Nayara Energy on July 29 at Vadinar port. The last Saudi delivery, 1 million barrels of Arab Light, was received by Nayara Energy on July 18. Despite repeated requests for comment, Saudi Aramco and SOMO have not responded regarding the halted supply.
As Nayara Energy navigates these challenges, it remains to be seen how the company will continue to adapt and maintain its operations in the face of ongoing sanctions and shifting supply dynamics.
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