Mangalore Refinery and Petrochemicals Limited (MRPL) has become the first state-owned refiner to charter a crude oil shipment from Iraq since the blockade of the Strait of Hormuz, according to a report. The company has hired the Aframax tanker Jasmin Joy, which is scheduled to load crude from Iraq's Basrah oil terminal on July 19-20.
Strategic move amid geopolitical tensions
The development marks a significant step in India's efforts to secure alternative crude supplies following the blockade of the Strait of Hormuz, a critical chokepoint for global oil shipments. MRPL, a subsidiary of Oil and Natural Gas Corporation (ONGC), is the first state-run refiner to directly charter a vessel for Iraqi crude since the crisis began.
Details of the shipment
The Aframax tanker Jasmin Joy, capable of carrying around 600,000 barrels of crude, will transport the cargo from Basrah. The loading window is set for mid-July, with the shipment expected to arrive at MRPL's refinery in Mangalore, Karnataka, later in the month. The company has not disclosed the volume or price of the cargo.
According to industry sources, MRPL's move is aimed at diversifying its crude sourcing and reducing dependence on spot market purchases amid volatile prices. The refinery typically processes a mix of domestic and imported crude, with Iraqi oil being a key component.
Impact on Indian refining sector
This charter could set a precedent for other Indian state-owned refiners, such as Indian Oil Corporation (IOC) and Bharat Petroleum Corporation (BPCL), to follow suit. The blockade of the Strait of Hormuz has disrupted shipments from major Middle Eastern producers, prompting Indian refiners to seek alternative routes and suppliers.
Experts note that direct chartering of vessels allows refiners to lock in freight rates and ensure supply chain stability. “MRPL’s initiative demonstrates the agility of Indian PSUs in navigating geopolitical risks,” said an oil sector analyst. The move also aligns with the government’s strategy to enhance energy security.
Background on the Hormuz blockade
The Strait of Hormuz, connecting the Persian Gulf to the Arabian Sea, handles about 20% of global oil shipments. Recent tensions in the region have led to a blockade, forcing shippers to use longer and costlier routes. India, which imports over 80% of its crude, has been particularly affected, with several cargoes delayed or rerouted.
The report, citing shipping data, confirms that MRPL’s charter is the first by an Indian state-owned refiner since the blockade began. Private refiners like Reliance Industries have already secured alternative supplies, but public sector units have been slower to adapt.
