Sanctions-hit Nayara Energy’s struggles persisted in September, with the Rosneft-backed refiner locked out of non-Russian crude for a second straight month and exports plunging nearly 60 per cent year-on-year, ship-tracking data show.
Nayara imported 330,000 barrels per day (bpd) of crude in September, 22 per cent lower than a year earlier as it relied entirely on Russian supplies, unable to access its usual flows from Iraq and Saudi Arabia, according to Kpler, a global real-time data and analytics provider. The September volumes, however, were higher than the 242,000 bpd it managed in August.
“Post-sanctions, the refinery has struggled with compliance, shipping, payment channels, and lower crude imports,” said Sumit Ritolia, lead research analyst, refining and modeling at Kpler. “Refining operations in August-September was curtailed due to sanctions issues with exports also remaining sharply lower than last year.”
Fuel exports stood at 89,000 bpd in September, unchanged from August but down from 210,000 bpd a year earlier. Coastal fuel movements for domestic supply, about 46,000 bpd, also fell nearly 30 per cent from a year earlier and 23 per cent from August, highlighting sanctions-related shipping issues.
Nayara’s crude inventory in September was broadly flat at around 3.42 million barrels. “The flat crude position alongside much lower exports suggests product stocks are likely running high, reflecting the difficulty in moving barrels under sanctions-related constraints,” Ritolia said.
EU sanctions imposed in July have squeezed Nayara on all fronts-from sourcing crude to refinery operations and fuel sales. The refiner has reportedly been unable to source chemicals and catalysts from European suppliers, raising operational risks.
A government official said last month that Nayara’s fuel supplies to domestic retailers would remain unaffected despite its struggles in securing ships for coastal transport. The company operates a 20 million tonnes per year refinery in Gujarat and 6,600 retail outlets across the country, while also supplying fuels to state-run Hindustan Petroleum Corp.
Before the EU sanctions, Russia’s state-owned Rosneft had been in talks with Reliance Industries and others to sell its entire 49 per cent stake in Nayara Energy.
