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ONGC signs crude supply agreement with BPCL
June 09, 2003 12:51 IST
Oil and Natural Gas Corp, said on Monday it had signed an agreement to supply crude oil to refiner Bharat Petroleum Corp Ltd for two years ending March 2004.
ONGC's crude oil from Bombay High fields, benchmarked against Nigerian Bonny Light crude, is supplied to BPCL's refinery in Mumbai and its subsidiary Kochi Refineries Ltd at Kochi in southern India.
The average price of Bombay High crude in 2002-03 was $29.5 per barrel in 2002-03, while the price of crude from oil fields in Assam in northeastern India was $27 per barrel, an ONGC statement said.
The agreed formula for crude prices replaces the administered pricing system which was abolished in April 2002.
During 2002-03, the two state-run firms had agreed on an interim crude oil price, which were almost the same that in the agreement.
During 2002-03, BPCL and its subsidiaries accounted for 42 per cent of ONGC's total crude supply of 518,000 barrels per day.
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