China's Hengli Petrochemical has purchased at least 2 million barrels of West African crude as the privately owned refiner seeks to distance itself from sanctioned oil supplies and improve its chances of being removed from a U.S. blacklist.
The company, which operates a 400,000-barrel-per-day refinery in the northeastern Chinese city of Dalian, has recently inquired about additional cargoes from West Africa and non-Iranian Middle Eastern producers for delivery from June onward, according to multiple trade sources cited by Reuters.
The move comes months after the U.S. Treasury sanctioned Hengli in April for allegedly purchasing Iranian crude oil as part of Washington's broader campaign to curb Tehran's oil revenues.
The sanctions form part of a long-running U.S. effort that intensified after the reimposition of restrictions on Iran's energy sector, targeting companies and intermediaries accused of facilitating Iranian crude exports.
Hengli has denied purchasing Iranian oil and said in April that it would pursue legal avenues to secure its removal from the sanctions list. The company also stated that it held sufficient crude inventories to maintain operations for at least three months.
