September 28, 2023 [Projects Today]- Oil and Natural Gas Corporation (ONGC) has signed an agreement with Hindustan Petroleum Corporation (HPCL) to sell the crude oil it produces from Mumbai offshore fields. The pact is for sale of about 4.5 million tpa of crude oil.
The deal takes forward the idea of a term contract, which enables selling a fixed quantity of oil in a year at a pre-agreed benchmark. This differs from auctions where refiners hammer deep discounts.
Last month, the oil exploration company had signed a similar pact to sell four million tpa plus an optional 0.5 million tonne of crude oil to Bharat Petroleum Corporation (BPCL). The latter too has a refinery to convert the crude oil into fuels like petrol and diesel at Mumbai.
ONGC produces 13-14 million tonne of crude oil per year from its resources in the Arabian Sea, off the coast of Mumbai.
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