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ONGC ties up with BPCL to sell crude oil from Mumbai region

IANS
Updated: August 3rd, 2023, 16:25 IST
in Business
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Mumbai: In a major development, the Oil & Natural Gas Corporation Ltd (ONGC) has signed a long-term contract with Bharat Petroleum Corporation Ltd (BPCL) to sell crude oil produced from the Mumbai region, an official said here Thursday.

The agreement was signed by ONGC Executive Director Sanjay Kumar and BPCL Executive Director Manoj Heda with top officers like C. Mathavan and other officers in attendance.

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The deal comes after the Centre decided to grant marketing and pricing freedom for domestic crude oil, replacing the previous allocation of quotas mechanism. Adapting swiftly to the new regime, ONGC initiated its first-ever successful e-auction of the crude oil – around 13-14 million tons are produced annually from Mumbai High Fields – to the highest bidder, said the officials.

The BPCL’s Mumbai Refinery in Mahul, Chembur east, has an old association with ONGC and has been processing their crude oil since 1976, and offers seamless logistical operations to ONGC with the advantage of being connected by an underwater pipeline through the Arabian Sea.

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