Reliance Industries Restructures Global Trade: Reasons Behind Mukesh Ambani's Decision to Bring the Dubai Crude Team Back to India
In a significant restructuring of its global trade operations, Reliance Industries Ltd. has decided to relocate its Dubai-based crude trading team back to India. This decision follows the establishment of long-term oil supply agreements with Russia, which now accounts for approximately 40% of Reliance's crude oil imports. The move is expected to be finalized by the end of this year.
According to a Reuters report, the relocation is driven by the fact that Reliance no longer needs to maintain its Dubai operations, as the company has secured enduring import contracts with major oil producers in both Russia and the Middle East. A source familiar with the situation stated, "Now that Reliance has a crude import deal with Russia, there is no need to incur additional costs for keeping the staff in Dubai."
Reliance did not respond to requests for comment from Reuters.
The private refiner, led by billionaire Mukesh Ambani, initially established a trading office in the UAE in 2021 to facilitate oil and refined fuel trading, including petrochemicals. In the following year, the company relocated its crude trading team to Dubai, which had emerged as a key hub for Russian oil trade following the onset of the Ukraine conflict.
Historically, Reliance purchased minimal amounts of Russian oil, but its import volume has significantly increased, with trade sources noting that about two-fifths of its oil needs are now sourced from Russia.
Reliance's state-of-the-art refineries at its Jamnagar complex possess the capacity to process approximately 1.4 million barrels of oil daily. These facilities are equipped to handle some of the heaviest crude grades, often sold at discounts that enhance profit margins.
Currently, around 20 crude traders are stationed at Reliance's Dubai office. A source revealed that, "Aside from 3-4 crude traders, all will be moved back to Mumbai," indicating that the remaining team members are also expected to return to Reliance's headquarters. The company has already communicated its plans to relocate its Dubai traders.
While Reliance intends to retain its product trading team in Dubai for the time being, it also maintains trading offices in Houston and London, with aspirations to expand its London team. In a related development, the company recently moved its petrochemical trade team from Dubai to Malaysia, where it operates production facilities, including Recron, an integrated polyester and textile company, and RP Chemicals.
