Saudi Aramco and SOMO have halted oil supplies to Nayara Energy: implications for India

Supply issues for crude oil for Nayara Energy

According to hvylya.net: Saudi Arabian oil company Saudi Aramco and the Iraqi state oil company SOMO have halted the sale of crude oil to Indian Nayara Energy, which is majority-owned by Russian 'Rosneft'. According to Reuters sources, the halt in supplies means that Nayara is completely dependent on Russia for crude oil imports.

Typically, the company received about 2 million barrels of Iraqi and 1 million barrels of Saudi crude oil each month, but in August, it did not receive any shipments from these companies due to payment issues and EU sanctions.

The private company Nayara operates its refinery in Vadinar in western India at only 70-80% capacity due to difficulties in product sales resulting from sanctions. Additionally, the company is facing challenges in transporting fuel and has to rely on shadow fleet vessels for product delivery.

Crude oil supplies for Nayara Energy have stopped due to payment issues and EU sanctions, leading to difficulties in production and sales. The company is now entirely reliant on Russia for oil supply.