ONGC Strikes Oil Deal With HPCL, Inks Crude Oil Sale Agreement From Mumbai Offshore Field
The agreement with HPCL is for the supply of about 4.5 million tonnes per annum of crude oil to its Mumbai refinery, sources said.
September 25, 2023. By News Bureau
The agreement with HPCL is for the supply of about 4.5 million tonnes per annum of crude oil to its Mumbai refinery, sources said. The deal is expected to fetch ONGC a better price than the quarterly auctions it used to conduct earlier.
ONGC announced the deal on X, saying it was a result of the marketing freedom granted by the government last year. The government had abolished a rule that mandated ONGC to sell its crude oil from pre-1999 blocks to state refiners at a discount.
However, sources said that ONGC still faced pressure from refiners like IOC to offer discounts equivalent to those on Russian oil, which was sanctioned and shunned by European buyers after Moscow’s invasion of Ukraine in February last year.
ONGC produces 13-14 million tonnes per annum of crude oil from its fields in the Arabian Sea, off the Mumbai coast. The crude oil is of high quality and close to Brent, the global benchmark. ONGC hopes that the term agreements will help it secure stable and remunerative prices for its crude oil and boost its revenues.
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