ONGC signs agreement with HPCL for sale of oil from Mumbai Offshore
Economy Business
Oil and Natural Gas Corporation (ONGC) has signed an agreement with Hindustan Petroleum Corporation (HPCL) to sell crude oil produced from Mumbai's offshore fields. The agreement is for the sale of approximately 4.5 million TPA of crude oil. The deal pioneered the idea of a term contract, which enables it to sell a certain amount of oil in a year at a pre-agreed benchmark. This is unlike auctions where refiners offer deep discounts. ONGC produces 13-14 million tonnes of crude oil per year from its resources in the Arabian Sea off the coast of Mumbai.
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