Mangalore Refinery and Petrochemicals (MRPL) would procure Rs 38,500 crore worth of crude oil from Oil and Natural Gas Corporation (ONGC) for a five-year period, according to an agreement signed between the firms recently. MRPL is a subsidiary of ONGC.
ONGC would supply Mumbai High crude from JNPT and offshore platform to MRPL. ONGC supplies about 11-12 per cent of MRPL’s crude requirement, reports indicate.
According to a statement by MRPL, the agreement is in line with the strict corporate governance practised by ONGC, as it was closed at ‘arm’s length’ and on par with the regulations applicable to oil marketing companies.
The agreement was approved by the managements of both the companies during June-July. The release said that ONGC already signed the crude oil sale agreement with Bharat Petroleum Corporation, Hindustan Petroleum Corporation, Indian Oil Corporation and Chennai Petroleum Corporation.
This deal marks the completion of such agreements with the major buyers of ONGC’s domestic crude oil, it said.