Indian refiners seek crude after US sanctions disrupt Russia oil supply

Indian refiners Mangalore Refinery and Petrochemical Ltd (MRPL) and Bharat Petroleum Corp Ltd (BPCL) issued tenders this week seeking crude oil, trade sources said on Tuesday (January 21), after harsher US sanctions disrupted Russian supply.

The tenders come more than a week after Washington announced sweeping sanctions targeting Russian producers and tankers, disrupting supply from the world's No. 2 producer and tightening ship availability.

MRPL issued its first crude import tender in more than a year, seeking offers of 1 million or 2 million barrels on a cost and freight (C&F) or a delivered at port (DAP) basis to be delivered on February 16-28, according to the notice and sources.

The notice did not specify which crude grades were sought but the sources said MRPL is open to offers of both sweet and sour crude.

The tender will close on Jan. 23 with bids valid on the same day.

Separately, BPCL is seeking 12 million barrels of Abu Dhabi's flagship Murban crude oil in an annual tender, the sources said.

The refiner plans to buy 1 million barrels of the light sour crude per month from April 2025 to March 2026, they said.

Technical bids are due later this week, while commercial bids will be submitted next week, one of the sources said.

Another source said BPCL bought 8 million barrels of Murban and 4 million barrels of Oman in its previous annual tender.

The companies typically do not comment on commercial deals.

Late last week, top Indian refiner Indian Oil Corp purchased 7 million barrels of Middle Eastern and African crude via tenders.

Separately, Indian state refiners have asked Abu Dhabi National Oil Co (ADNOC) to offer pricing of its crude on a delivered basis to manage costs, three refining sources said on Monday.