We implemented the Princeton Ocean Model to study the seasonal circulation patterns in the Gulf of Khambhat and surrounding oceans on the northwestern continental shelf of India. Simulated currents are used in General NOAA Operational Modeling Environment to track a past oil spill event in this region. The model's performance is evaluated against the Synthetic Aperture Radar (SAR) and in situ measurements. Mean currents, computed by subtracting tidal components from the simulated currents, are used together with satellite images of Chlorophyll-a to describe spatial patterns of the circulation. Mean-flow patterns inside the gulf are characterized with strong along-channel flow during southwest monsoon and spring seasons, which are weak during winter and autumn seasons. On the proximity of the gulf mouth currents are northwestward throughout the year except the southwest monsoon when the circulations are southwestward. Coastal boundary currents parallel to the 60 m isobath are prominent during the inter-monsoon and weak during the monsoon periods. Slope currents, near the shelf-break, are strong during southwest monsoon and spring periods. Numerical experiments suggest that ocean current is the main driver of the net transport of spilled oil in this region and other factors such as direct wind drift play negligible role.