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P. Manoj

New Delhi , March 4

AFTER a lapse of two years, Great Eastern Shipping Company Ltd (GE Shipping) has won a one-year deal worth around $50 million to ship crude oil for Mangalore Refinery and Petrochemicals Ltd (MRPL), a subsidiary of ONGC Ltd.

GE Shipping had quoted a World Scale rate of 153 to clinch the contract, staving off stiff competition from Shipping Corporation of India, Mercator Lines Ltd, India Steamship Company Ltd and a few foreign lines.

"GE Shipping has been granted approval to ship crude for MRPL for a year beginning April 1," ONGC officials told Business Line.

The deal involves shipping four to six parcels of 85,000-95,000 tonnes each of crude oil per month at a charter rate of around $30,000 per day from Ras Tanura in Saudi Arabia and Kharag Island in Iran to MRPL's refinery in Mangalore.

Mercator Lines had shipped crude for MRPL for the last two years beginning 2003-04 when MRPL came under ONGC fold and, hence, had to follow all the procedures associated with the PSU tendering process including finalising the contract through the centralised chartering wing Transchart and granting first right of refusal to Indian flag vessels.

Prior to that, GE Shipping had shipped crude for MRPL when it was under the Aditya Birla Group for four years in succession.

For the contract from April 1, 2004 to March 31, 2005, Mercator was shipping crude for MRPL at a World Scale rate of 129.

World Scale points are a percentage of a nominal rate or so-called flat rate for a specific route.

Flat rates, quoted in dollars per tonne, are revised annually by the London-based World Scale Association to reflect changing fuel costs, port tariffs and exchange rates.

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