Saudi Aramco and SOMO Halt Oil Supplies to India: Reasons for the Decision.

Suspension of Crude Oil Supplies for Nayara Energy

According to inkorr.com: The oil company Saudi Aramco from Saudi Arabia and the Iraqi state company SOMO have suspended the sale of crude oil to the Indian company Nayara Energy, which is owned by the Russian 'Rosneft'. According to Reuters sources, this suspension means that Nayara is now wholly dependent on oil imports from Russia.

Usually, the company received about 2 million barrels of Iraqi and 1 million barrels of Saudi crude oil each month, but in August it received no shipments from these companies due to payment issues and EU sanctions.

Nayara is a private company that operates a refinery in Vadinar in western India, but currently operates at only 70-80% of its capacity due to difficulties in product marketing due to sanctions. Additionally, the company is facing fuel transportation issues and is forced to use shadow fleet vessels to deliver its products.

Thus, the suspension of crude oil supplies for Nayara Energy is caused by payment issues and EU sanctions, which complicate the production and marketing of goods. The company is now completely dependent on Russian oil supplies.

This situation highlights Nayara Energy's growing dependence on Russian resources, which could negatively impact its business model amid ongoing changes in global oil markets. A key question remains how the company will cope with these challenges and whether it can establish new supplies in the current sanctions environment.