New Delhi: Sanctions-hit Nayara Energy is grappling with shrinking crude imports, reduced refinery runs and falling fuel exports. With non-Russian supplies drying up, the Rosneft-backed refiner is now entirely dependent on Moscow's barrels and scrambling for new markets after Europe shut its doors.
Nayara imported 242,000 barrels per day (bpd) of crude in August - all from Russia - down 28% from July and 30% from a year earlier, according to Kpler, a global real-time data and analytics provider. August volumes were the lowest in at least a year.
Lower imports forced a sharp drawdown in inventories, which fell from 5.9 million barrels in early July to around 3.3 million barrels by end-August, as per Kpler.
"Typically, the refinery also sources from Middle Eastern national oil companies, but due to sanctions and related payment channel issues, no Middle Eastern crude was received in August," said Sumit Ritolia, lead research analyst, refining and modelling, at Kpler.
Nayara didn't respond to queries.
Lower imports forced a sharp drawdown in inventories, which fell from 5.9 million barrels in early July to around 3.3 million barrels by end-August, according to Kpler.
Fuel exports stood at 109,000 bpd in August, down 23% from a year ago but 16% higher than in July. "Exports are sharply lower than last year due to reduced refinery runs linked to lower crude intake," said Ritolia.
Nayara has been compelled to seek new markets such as Brazil and Taiwan, shipping 16,000 bpd each to the two countries.
"Brazil received a jet fuel cargo, which Nayara previously supplied to Europe before sanctions closed that outlet. Taiwan looks more opportunistic, reflecting both trading flexibility and sanctions-driven redirection," said Ritolia.
Ships carrying 57,000 bpd - about half of Nayara's August exports - are yet to declare destinations, possibly to avoid sanctions-related scrutiny.
The UAE, a regular buyer of Nayara's fuels, didn't receive any from the company in August.
Refinery run figures for August couldn't be ascertained. In July, Nayara had processed 4% less crude than a year earlier, according to oil ministry data.
On July 18, the European Union announced "full-fledged sanctions (asset freezes, travel bans, bans on providing resources)" against Nayara Energy, as well as international firms managing shadow fleet vessels and trading Russian crude oil. Nayara and its key shareholder Rosneft called the move unfair. Nayara has maintained it is an Indian refinery focused on serving Indian consumers.
Since the sanctions, Nayara's access to crude supplies, ships and banking channels has been restricted. The company has stepped up its focus on the domestic fuel market, where it operates about 6,800 pumps.
Nayara imported 242,000 barrels per day (bpd) of crude in August - all from Russia - down 28% from July and 30% from a year earlier, according to Kpler, a global real-time data and analytics provider. August volumes were the lowest in at least a year.
Lower imports forced a sharp drawdown in inventories, which fell from 5.9 million barrels in early July to around 3.3 million barrels by end-August, as per Kpler.
"Typically, the refinery also sources from Middle Eastern national oil companies, but due to sanctions and related payment channel issues, no Middle Eastern crude was received in August," said Sumit Ritolia, lead research analyst, refining and modelling, at Kpler.
Nayara didn't respond to queries.
Lower imports forced a sharp drawdown in inventories, which fell from 5.9 million barrels in early July to around 3.3 million barrels by end-August, according to Kpler.
Fuel exports stood at 109,000 bpd in August, down 23% from a year ago but 16% higher than in July. "Exports are sharply lower than last year due to reduced refinery runs linked to lower crude intake," said Ritolia.
Nayara has been compelled to seek new markets such as Brazil and Taiwan, shipping 16,000 bpd each to the two countries.
"Brazil received a jet fuel cargo, which Nayara previously supplied to Europe before sanctions closed that outlet. Taiwan looks more opportunistic, reflecting both trading flexibility and sanctions-driven redirection," said Ritolia.
Ships carrying 57,000 bpd - about half of Nayara's August exports - are yet to declare destinations, possibly to avoid sanctions-related scrutiny.
The UAE, a regular buyer of Nayara's fuels, didn't receive any from the company in August.
Refinery run figures for August couldn't be ascertained. In July, Nayara had processed 4% less crude than a year earlier, according to oil ministry data.
On July 18, the European Union announced "full-fledged sanctions (asset freezes, travel bans, bans on providing resources)" against Nayara Energy, as well as international firms managing shadow fleet vessels and trading Russian crude oil. Nayara and its key shareholder Rosneft called the move unfair. Nayara has maintained it is an Indian refinery focused on serving Indian consumers.
Since the sanctions, Nayara's access to crude supplies, ships and banking channels has been restricted. The company has stepped up its focus on the domestic fuel market, where it operates about 6,800 pumps.
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