ONGC and BPCL sign first-ever crude oil contract under Marketing Freedom regime.
New Delhi: The relationship between Oil and Natural Gas Corporation Limited (ONGC) and Bharat Petroleum Corporation Limited (BPCL) has reached a new level of cooperation with significant development. ONGC has recently established a term contract with BPCL for the sale of crude oil from the Mumbai region, marking a historic milestone for both companies. The signing ceremony for this contract was held at the ONGC NBP Green Heights in Mumbai, where key executives from both companies were present to witness this momentous occasion. This agreement has come about due to the Indian government’s recent decision to grant marketing and pricing freedom for domestic crude oil, replacing the previous allocation mechanism.
ONGC has shown remarkable flexibility and adaptability to the new regime and has successfully initiated the first-ever e-auction of Mumbai Offshore crude oil. BPCL has been processing ONGC’s crude oil at its Mumbai refinery since 1976, and this partnership has been strengthened by the seamless logistical operations that BPCL offers ONGC, as they are connected by pipeline. As the energy market dynamics continue to evolve, ONGC’s commitment to innovation and excellence in the sector remains steadfast, reinforcing its position as a key player in India’s oil and gas industry. This partnership between ONGC and BPCL only grows stronger, paving the way for a brighter future together. This development marks a significant milestone for both companies, and it is a testament to their dedication to providing high-quality products and services to their clients.