BPCL Unfazed by Geopolitics, Will Source Crude on Techno-Commercial Merit: CMD Sanjay Khanna

State-run oil major in talks with Saudi Arabia and global players for Andhra Pradesh refinery project; focus remains on domestic fuel supply.

New Delhi:State-owned Bharat Petroleum Corporation Limited (BPCL) will continue to procure crude oil based purely on “techno-commercial” considerations despite evolving geopolitical developments, Chairman and Managing Director Sanjay Khanna said in an interaction.

Khanna emphasised that BPCL’s sourcing strategy is driven by a mix of technical compatibility, pricing, logistics, and refining efficiency rather than political factors. “We evaluate crude based on techno-commercial merit. Our focus remains on ensuring energy security and cost optimisation,” he noted.

Crude Sourcing Strategy

BPCL, which operates major refineries across India, sources crude from multiple global suppliers to diversify risk and maintain supply stability. Khanna indicated that the company constantly monitors international market conditions and adjusts procurement strategies accordingly.

Amid shifting global energy dynamics and geopolitical tensions, BPCL aims to maintain flexibility in its sourcing mix to safeguard operational efficiency and profitability.

Andhra Pradesh Greenfield Refinery

The CMD also shared updates on BPCL’s proposed greenfield refinery project in Andhra Pradesh. The company is in discussions with Saudi Arabia and other international players regarding potential investment and partnerships for the project.

The planned refinery is expected to significantly enhance BPCL’s refining capacity and strengthen fuel supply to the domestic market. However, Khanna clarified that the new facility is unlikely to substantially boost exports, as the primary objective is to meet India’s growing energy demand.

Focus on Domestic Demand

India’s rising consumption of petroleum products continues to drive expansion plans for public sector oil companies. The Andhra Pradesh refinery is part of BPCL’s long-term strategy to augment capacity and modernise infrastructure.

Khanna reiterated that BPCL remains committed to ensuring uninterrupted fuel availability across the country while also investing in cleaner energy initiatives and sustainability measures.

Further details regarding the investment structure, timeline, and capacity of the refinery are expected to be announced once discussions with potential partners progress.