New Delhi: State-owned Oil and Natural Gas Corporation (ONGC) on Sunday said that it has entered into an agreement to supply crude oil from its Mumbai offshore fields to Hindustan Petroleum Corporation Ltd (HPCL). After Bharat Petroleum Corporation Limited (BPCL), ONGC signs up HPCL for sale of oil from Mumbai offshore fields. This marks the second such agreement in the past two months, as ONGC opts for term contracts over auctions to avoid substantial discounts offered by refiners.
Announcing the deal on X, (formerly known as Twitter), ONGC also mentioned a "term agreement with HPCL for the sale of crude oil from Mumbai offshore." Although specific details were not disclosed, sources familiar with the matter have revealed that the agreement covers the sale of approximately 4.5 million tonnes of crude oil per annum to HPCL's Mumbai refinery.
As far as the ONGC's latest contracts are concerned, this agreement represents ONGC's second term contract for the sale of Mumbai Offshore crude oil following the freedom to market its own products. The ONGC's annual production of crude oil from its fields in the Arabian Sea, off the coast of Mumbai, ranges from 13 to 14 million tonnes.
Last month, ONGC had also signed a similar kind of agreement to supply 4 million tonnes per annum of crude oil, with an optional 0.5 million tonnes, to Bharat Petroleum, which also operates a refinery in Mumbai for converting crude oil into products like petrol and diesel.
