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Oil and Natural Gas Corporation (ONGC) has signed a crude oil sale agreement with Mangalore Refinery and Petrochemicals Ltd (MRPL).
A press release by MRPL said here on Tuesday that this agreement covers the supply of Mumbai High crude from JNPT and offshore platform to MRPL.
Value
The approximate value of the crude oil envisaged to be supplied from ONGC over a five-year period is Rs 38,500 crore.
ONGC supplies about 11-12 per cent of MRPL’s crude requirement, it said.
The release said that the manner in which the agreement was worked out further cements the strict corporate governance practised by ONGC, as the agreement was closed at ‘arm’s length’ and on par with the regulations applicable to oil marketing companies. (MRPL is a subsidiary of ONGC).
The agreement was approved by the managements of both the companies during June-July.
Marks completion
The release said that ONGC has already signed the crude oil sale agreement with Bharat Petroleum Corporation Ltd, Hindustan Petroleum Corporation Ltd, Indian Oil Corporation Ltd and Chennai Petroleum Corporation Ltd.
This agreement marks the completion of such an agreement with the major buyers of ONGC’s domestic crude oil, it said.
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