Oil and Natural Gas Corporation (ONGC) signed the crude oil sale agreement with Mangalore Refinery and Petrochemicals Ltd (MRPL). The announcement about the agreement was made on 6 August 2013. The objective of the agreement is to cover supply of Mumbai High crude from JNPT as well as offshore platform to MRPL.
It was decided that ONGC would supply crude oil to MRPL and the estimated value of oil to be supplied for tenure of 5 years is 38500 crore Rupees. At present, ONGC satisfies around 11 to 12 percent of MRPL’s crude requirement.
It is important to note that the agreement is on par with regulations which are applicable to the oil marketing companies. MRPL is the subsidiary of ONGC only. The approval for the agreement was given by the management of ONGC and MRPL during June-July 2013.
ONGC, in the meanwhile has also signed the crude oil sale agreement with Chennai Petroleum Corporation Ltd, Bharat Petroleum Corporation Ltd, Indian Oil Corporation Ltd and Hindustan Petroleum Corporation Ltd.
The ONGC-MRPL agreement also indicates the completion of agreements of these kinds with the major buyers of domestic crude oil of ONGC.