The Hindu Business Line : ONGC, HPCL sign pact to share infrastructure

New Delhi, July 19 Oil and Natural Gas Corporation Ltd (ONGC) and Hindustan Petroleum Corporation Ltd (HPCL) have entered into a memorandum of understanding (MoU) to share infrastructure and expertise.

According to a statement issued by ONGC, the company through its subsidiary MRPL and Tatipaka Refinery, will supply all grades of petroleum products to HPCL, after meeting the demand . HPCL, in turn, will provide road and rail terminalling services from its Mangalore, Hassan & Devanagunthi units , LPG Import Facility at Mangalore (MLIF) and ATF handling facilities at Bangalore , Kozhikode and Goa.

Under the agreement, HPCL will supply motor spirit and high speed diesel and extend infrastructure services ONGC-MRPL’s retail outlets. In turn, ONGC will supply products (from its Tatipaka refinery) to HCPL customers in Visakhapatnam, Rajamundry, Vijayawada, Suryapet, Ghatkesar, Mumbai, Vashi, Loni, Hazarwadi and Pakni, for evacuation and marketing by HPCL.

The MoU will facilitate entry of ONGC and MRPL into direct marketing of products, the statement said. However, it has been mutually agreed that neither party shall solicit business from each other’s exclusive institutional customers. In case of large volume strategic customers suiting specific logistics, both parties shall mutually agree for supplies on proportionate basis.

HPCL and ONGC willco-operate on training and development, and foray into oil exploration, refining, marketing, infrastructure development, petrochemicals and other energy-related ventures in India or abroad.