Why is Hengli Petrochemical seeking West African and Middle Eastern oil instead of Iranian oil?

Hengli Petrochemical, sanctioned by the U.S. in April for allegedly purchasing Iranian oil (which it denies), is seeking entirely non-sanctioned crude—specifically West African and non-Iranian Middle Eastern oil—to get off the U.S. blacklist and avoid deterring counterparties fearful of secondary sanctions; it has already bought at least 2 million barrels of West African crude for delivery around late June or July and is inquiring about further cargoes from June onward.

What operational impact have U.S. sanctions had on Hengli’s refining activities?

U.S. sanctions have forced Hengli to reduce its June processing rates to slightly below 70% from just over 80% the previous month due to falling crude inventories, after having been heavily reliant on Iranian oil since late 2024 and also purchasing Russian crude; additionally, its former Singapore-based trading arm planned to cease operations following the sanctions.

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China's Hengli seeks West African, Middle Eastern oil after sanctions, sources say

Jun 10, 2026

Sanctioned Chinese refiner Hengli Petrochemical is sourcing West African and Middle Eastern crude to replace Iranian supplies and seek removal from U.S. sanctions lists. Reduced inventories have forced the company to lower its June processing rates below 70%.

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