MRPL Reports Russian Crude Sourcing at 32% in Q2FY27 Amid Supply Adjustments

Mangalore Refinery and Petrochemicals Ltd (MRPL) has reported that its crude oil sourcing from Russia stood at 32 per cent during the second quarter of 2026-27. According to Devendra Kumar, Director (Finance) of MRPL, the figure represents an increase from approximately 28 per cent in the first quarter of the same fiscal year.

Speaking during an earnings conference call, Kumar stated that the company maintained secure crude supplies and diversified its sourcing basket despite ongoing disruptions in West Asia. When West Asian term cargoes were curtailed due to the situation in the Strait of Hormuz, MRPL increased domestic crude intake and spot purchases. During the second quarter, domestic crude accounted for about a quarter of the refinery's intake, while term contracts made up approximately a fifth.

MRPL sourced its crude primarily from West Africa, the Americas, West Asia, and Russia. To reduce its exposure to shipping risks stemming from the conflict in West Asia, the company has increased crude oil purchases on a delivered basis. Kumar noted that the company will continue to insist on delivered-at-port (DAP) cargoes to de-risk operations, and will evaluate purchasing purely based on delivered economics once conditions stabilise. Under a DAP agreement, the supplier bears the contractual responsibility for delivering the cargo to its destination.

Addressing operational updates, executives commented on a September 30 fire incident at the coker hydro treater unit. Deepak Prabhakar, Executive Director (Marketing and Business Development), stated that the third-quarter total throughput is not likely to change significantly, with any marginal impact on total production expected to be less than a couple of percentage points.

Kumar added that the fire incident is under active investigation and reconstruction of the unit has commenced. Restoration is targeted by mid-December, and the company expects third-quarter throughput to be close to second-quarter levels. MRPL has booked a provisional loss of ₹118.76 crore in the second quarter as an exceptional item, against an estimated replacement value of about ₹225 crore. Company officials noted that these are preliminary estimates and that the assets are adequately insured.

On the direct marketing front, Prabhakar highlighted growth in diesel volumes during the second quarter. Total sales reached approximately 40 thousand metric tonnes (TMT), compared to 20 TMT in the first quarter.

"MRPL's ability to navigate West Asian supply disruptions by scaling up Russian crude sourcing and domestic intake demonstrates the critical importance of supply chain agility in the energy sector. Procuring via delivered-at-port terms is a pragmatic risk-mitigation strategy during geopolitical uncertainties. Furthermore, effectively managing operational setbacks like plant fires through adequate insurance and clear recovery timelines helps maintain financial resilience and stakeholder confidence." — Dr. Shishir Gupta, Founder & CEO, StartupLanes