Nayara Energy Restores Crude Inflows to Near Normal, Boosting Refinery Operations

Nayara Energy has achieved a significant operational recovery by restoring its crude oil intake to near normal levels in October, marking the first month of normalized inflows after five consecutive months of restricted supplies. The company, which is backed by Rosneft, received 397,000 barrels per day (bpd) of crude in October, a substantial increase from the 323,000 bpd in September and 242,000 bpd in August.

Significantly, every barrel received in October was sourced from Russia. Traditional suppliers such as the UAE and Saudi Arabia continued to hold back deliveries. This shift fully replaces the supply shortfall that began when Iraq and Saudi Arabia suspended shipments in August, following EU sanctions on Nayara. Russian volumes were already lower in June and July, compounding pressure on the refiner’s operations.

Improved crude availability has helped Nayara Energy increase its refinery utilization rate to 85-90%, a recovery from the 60-70% range observed in previous months. However, operations are still below Nayara’s typical utilization level of over 100%.

Despite the operational improvements, fuel exports remain subdued. Outbound shipments in October totalled 76,000 bpd, which is 21% lower than in September and down 48% from a year earlier. Nayara has had to divert cargoes to new destinations such as Brazil, Turkey, and Sudan, as traditional export markets like the UAE, Oman, South Africa, and Malaysia are currently inaccessible.

Impact This full restoration of crude inflows marks a crucial operational recovery for Nayara Energy. It indicates greater stability in its supply chain and refining operations, potentially leading to improved product output and financial performance. The increased reliance on Russian crude highlights the ongoing influence of geopolitical factors on global energy markets. The diversion of exports to new destinations may also reshape trade flows. Rating: 7/10

Difficult Terms: Crude intake: The amount of raw petroleum oil a refinery receives for processing. Normalised inflows: A return to usual, expected amounts or flows after a period of disruption or abnormality. Barrels per day (bpd): A standard unit used to measure the volume of oil or petroleum products produced, consumed, or transported daily. Refinery utilisation: The percentage of a refinery's total processing capacity that is actively being used. Subdued: Lower than usual or expected; less active or intense. Geopolitical constraints: Limitations or difficulties arising from international relations, political events, and conflicts between countries. FY24–25: Fiscal Year 2024-2025.