Nayara seeks Indian govt’s help to get refinery repair gear, say sources

NEW DELHI: Russian-backed Indian refiner Nayara Energy is seeking Indian government help to source equipment and materials needed for maintenance as European Union sanctions make it difficult to secure key items, three people familiar with the matter said.

The private refiner has approached the Centre for High Technology, an advisory body under India’s oil ministry, seeking assistance in sourcing specialised equipment, catalysts, and other raw materials, the sources said.

Nayara, majority-owned by Russian entities including oil major Rosneft operates a 400,000 barrels per day refinery in Vadinar in western India that it has scheduled to shut down for maintenance in February, the sources said. Nayara last shut its refinery for maintenance in November 2022, Reuters reported.

Indian rules mandate periodic refinery maintenance to ensure operational safety and efficiency. Companies also carry out shutdowns to improve yields. “They can delay the mandatory shutdown by a few months but they cannot postpone it beyond four to six months,” the first source with direct knowledge of the situation said.

The sources declined to be identified as they were not authorised to speak with media.

Nayara is processing only Russian crude after suppliers from Iraq and Saudi Arabia halted deliveries as the EU sanctions imposed in July created payment problems, sources have said.

For maintenance, the refiner requires catalysts for key processing units such as hydrotreaters, hydrocrackers and reformers. While some catalysts can be sourced from China and Russia, others are available only from Western firms, the first and a second source said. Nayara also needs specialised heavy equipment including compressors, pumps and valves, which are more difficult to procure under current restrictions, the third source said.