Saudi Aramco and Iraq’s state oil marketing company, SOMO, have halted crude shipments to India’s Nayara Energy, according to industry sources and shipping data.
The move follows European Union sanctions imposed in July, which disrupted payment channels linked to Russian energy revenues.
Nayara Energy, in which Russia’s Rosneft holds a majority stake, typically imports about 2 million barrels of Iraqi crude and 1 million barrels of Saudi crude each month. However, shipping data from Kpler and LSEG showed no deliveries from either supplier during August.
With Saudi and Iraqi supplies suspended, the Vadinar refinery in Gujarat, which has a processing capacity of 400,000 barrels per day, was forced to rely solely on Russian crude. The plant has since been operating at only 70 to 80 percent of its capacity, industry sources said.
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The supply halt has also created logistical challenges. Shipping companies have distanced themselves from Nayara over compliance concerns, forcing the refiner to use so-called “dark fleet” vessels to move its refined fuel cargoes discreetly.
In July, Nayara’s CEO resigned amid mounting pressure, and a new chief executive, formerly with Azerbaijan’s SOCAR, has been appointed.
