Reliance Industries to relocate Dubai crude oil trading team to Mumbai amid restructuring: Report

Reliance Industries Ltd, the operator of the world’s largest refining complex, is restructuring its trading operations by relocating most of its Dubai crude oil trading team back to Mumbai by the end of this year, news agency Reuters reported, quoting two sources familiar with the matter.

This decision follows Reliance's recent securing of long-term oil supplies from Russia, which has diminished its need to purchase spot cargoes. One source, speaking on condition of anonymity due to the private nature of the information, noted, “With the crude import deal with Russia and ongoing agreements with major Middle Eastern producers, Reliance no longer needs to maintain extra costs for keeping the staff in Dubai.”

Reliance did not respond to Reuters’ request for comments regarding the move.

The company, led by billionaire Mukesh Ambani , established an office in the UAE in 2021 to facilitate trading in oil and refined fuels, including petrochemicals. Following Russia's invasion of Ukraine, Reliance moved its crude trading team to Dubai in 2022, as the city became a central hub for Russian oil trade.

Previously, Reliance sourced minimal oil from Russia; however, recent trade data indicates that the conglomerate now imports about 40 per cent of its oil requirements from Moscow.

Reliance’s Jamnagar complex boasts two sophisticated refineries capable of processing nearly 1.4 million barrels of oil daily, with a particular expertise in handling tough heavy crude grades sold at discounts, enhancing profit margins.

Currently, the Dubai office employs around 20 crude traders. According to the second source, “Barring 3-4 crude traders, all will be moved back to Mumbai,” adding that the remaining traders are expected to eventually return to the company’s headquarters.

The company has already informed its Dubai trading team of the relocation plans. However, Reliance intends to retain its product trading team in Dubai for the time being.

In addition to its Dubai operations, Reliance has trading offices in Houston and London, with plans to expand its team in London. Recently, the company also transferred its petrochemical trade team from Dubai to Malaysia, where it owns production facilities, including Recron, an integrated polyester and textile company, and RP Chemicals.

(With Reuters inputs.)