New Delhi: Public sector company Oil and Natural Gas Corporation (ONGC) has sold crude oil from Mumbai’s offshore fields to Hindustan Petroleum Corporation Limited. (HPCL) has signed an agreement to sell. ONGC has signed the second such agreement in two months. The country’s top oil and gas production company is giving priority to sales through contract rather than auction.
ONGC said in a post on ‘X’ that it has signed an agreement with HPCL for the sale of crude oil from the Mumbai offshore field. The company has not given details of this agreement. However, sources with knowledge of the matter said that the agreement is for the sale of 45 lakh tonnes of crude oil annually to HPCL’s Mumbai refinery. ONGC said, “This is the second agreement for the sale of Mumbai Offshore crude oil after getting marketing freedom.
‘Last month, ONGC had signed an agreement with Bharat Petroleum Corporation Limited (BPCL) for the annual sale of 40 lakh tonnes and five lakh tonnes of alternative crude oil. BPCL also has a refinery to convert crude oil into fuels like petrol and diesel. ONGC produces 13-14 million tonnes of crude oil annually from its fields in the Arabian Sea.
In June last year, the government had abolished the rule of selling oil from blocks awarded before 1999 to government-nominated customers, mostly state-run refinery companies. Due to the old rule, producers like ONGC and Oil India did not get better market prices for their products. Following this rule change, ONGC had started quarterly auction of crude oil produced from Mumbai High and Panna/Mukta fields in the western offshore.