Sanctions-hit Nayara seeks Indian govt help to get refinery repair equipment
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 specialized equipment, catalysts and other raw materials, the sources said.
Nayara and the Centre for High Technology did not immediately respond to requests for comment.
Nayara, majority-owned by Russian entities including oil major Rosneft, operates a 400,000-bpd refinery in Vadinar in western India that it has scheduled to shut down for maintenance in February, the sources said. Refineries typically shut roughly every four years for maintenance that can last 30 to 50 days. Nayara last shut its refinery for maintenance in November 2022.
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 authorized 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 specialized heavy equipment including compressors, pumps and valves, which are more difficult to procure under current restrictions, the third source said.
"Catalysts are mainly available from the U.S. and European companies. Because of sanctions Nayara may not be able to get them," said B.N. Bankapur, former head of refineries at state-owned Indian Oil Corp.
Nayara could turn to domestic, Russian or Chinese catalysts, but that would require ensuring that they are compatible and would not adversely impact yields or quality, he said.
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