The Hindu Business Line : ONGC, OIL renew pact for Assam crude movement

Delivery procedure
The MoU describes the detailed procedure of delivery and redelivery of crude oil, as both OIL and ONGC have to use the same pipeline at the same time to evacuate their production.

New Delhi April 25 Oil and Natural Gas Corporation Ltd (ONGC) and Oil India Ltd (OIL) on Wednesday renewed their memorandum of understanding (MoU) for transportation of ONGC's Assam crude oil from its installations at Lakwa, Galeki, Rudrasagar and Borholla through pipelines owned and operated by OIL.

According to a statement issued by ONGC, this MoU will be valid for five years from April 2007 to March 2012. The earlier MoU, which was entered into as a consequence of the deregulation of the administered price mechanism (APM) regime, was valid for five years from April 2002 to March 2007.

Both companies agreed that this MoU would be converted into an agreement — COTA (crude oil transportation agreement) — in six months. ONGC and OIL are the two major crude oil producers operating together for more than 50 years in the North East region of India. Together, they produce around 4.5-5 million tonnes per annum which is transported to four refineries of Indian Oil Corporation and Bharat Petroleum Corporation Ltd located at Digboi, Numaligarh, Guwahati and Bongaigaon through the trunk pipeline of OIL. The pipeline originates from Naherkatia in the extreme upper part of Assam and then passes over the entire Assam State to reach Barauni in Bihar.

ONGC pumps its Assam crude into this trunk pipeline at two locations, one at Moran near Sivasagar and other at Jorhat.

The MoU describes the detailed procedure of delivery and redelivery of crude oil, as both OIL and ONGC have to use the same pipeline at the same time to evacuate their production.

It has clearly explained how the crude oil off-take will be regulated in case there is any problem at the refinery end or during any unforeseen circumstances such as flood or earthquake.

Besides this, the MoU brings out the optimised usages of the pipeline's spare capacity through transportation of ONGC's crude.

Article E-Mail :: Comment :: Syndication :: Printer Friendly Page

Stories in this Section
USFDA nod for Dr Reddy's Zolpidem

Ceat plans sourcing tyres from China, Vietnam

CCL Products' net dips

AIDS patients to protest in front of Abbott Labs

MIC Electronics plans IPO for Rs 76.5 crore

ONGC, OIL renew pact for Assam crude movement

Nalco net profit jumps 52%

EarthTV, Mediascope in pact

Technical training for people affected by Tata Motors project

Shantha Bio offers five-in-one vaccine