RIL diversifies crude sourcing, redirects exports amid Middle East disruptions

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Diversified crude supplies and a shift in export destinations helped the company navigate disruptions and capture stronger refining margins during the quarter

By BL Ahmedabad Bureau

Updated - October 30, 2026 at 10:21 PM.

FILE PHOTO: Reliance Industries diversified crude sourcing across regions and redirected exports to better-realisation markets to sustain record crude processing amid supply disruptions. | Photo Credit: AMIT DAVE

Reliance Industries Ltd (RIL) diversified its crude sourcing across Latin America, North America and the Mediterranean region and redirected exports to markets offering better realisations to navigate supply disruptions in the Middle East, helping the company maintain record crude processing levels and capitalise on stronger global refining margins in the second quarter of FY27.

Despite disruptions in the Strait of Hormuz, the company sustained its refinery operations by tapping alternative crude supplies, even as freight rates surged 15-20 times and price differentials for Arab Gulf crude widened. Reliance redirected exports of light distillates to East and South Africa, while shipping middle distillates to Europe, Latin America and West Africa to maximise realisations, the company said.

Alternative crude sourcing and export strategy

The strategy helped Reliance’s Oil-to-Chemicals (O2C) business deliver a strong performance, with segment revenue rising 44 per cent year on year to ₹2,31,601 crore in the September quarter. EBITDA surged 68 per cent to ₹25,203 crore, driven by exceptionally strong transportation fuel cracks and improved downstream petrochemical margins.

Global energy supply chains remained under pressure during the quarter following geopolitical disruptions in the Middle East. Average Brent crude prices increased 41 per cent year-on-year to $97 per barrel, while transportation fuel prices rose 50-78 per cent. The tighter supply environment pushed refining margins sharply higher, with fuel cracks increasing 3-3.7 times year-on-year.

Strong refining margins boost O2C earnings

Diesel cracks rose 252 per cent, while gasoline and jet fuel cracks increased 196 per cent and 268 per cent, respectively. Improved petrochemical realisations also supported earnings, with polyester chain margins rising 33 per cent to a three-year high, led by stronger paraxylene (PX) and purified terephthalic acid (PTA) margins. However, higher crude oil premiums, elevated freight costs, special additional excise duty-related expenses, and under-recoveries in domestic fuel retail partly offset the gains.

Lower KG-D6 production weighs on oil and gas business

The company’s Oil and Gas exploration and production business, meanwhile, reported a marginal 0.6 per cent decline in revenue to ₹6,020 crore, while EBITDA fell 2 per cent to ₹4,901 crore. Lower production and price realisation from the KG-D6 gas fields weighed on performance. Average KG-D6 gas price realisation declined to $8.88 per MMBtu from $9.97 per MMBtu a year ago, while production fell 9 per cent year-on-year to 57.8 billion cubic feet equivalent (BCFe). The weakness was partly offset by higher condensate price realisation and improved coal-bed methane (CBM) performance. CBM production increased 21.4 per cent to 3.4 BCFe during the quarter.

Reliance expands coal-bed methane production

Reliance is also expanding its CBM production through a multi-lateral well campaign. Of the planned 40 wells, Reliance drilled 37 and connected 35 to the production system by the end of the quarter.

Published on October 30, 2026

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