OREANDA-NEWS. Forging a powerful bond to succeed, a landmark agreement, the Crude Oil Sale Agreement (COSA), was inked between ONGC, India’s premier E&P company and a Maharatna, and Mangalore Refinery and Petrochemicals Limited (MRPL), a mini ratna Cat 1 and subsidiary of ONGC, on 2nd August for supply of Crude Oil.

The COSA was signed by Mr Yash Malik, GGM – Chief Marketing, ONGC and Mr Pankaj Agarwal, GM (IT) MRPL in the presence of Shri Sudhir Vasudeva, Chairman, ONGC Group of companies, Mr K.S Jamestin, Director (HR), Mr A.K. Banerjee, Director (Finance), Mr P.K Borthakur, Director (Offshore) – I/c Marketing and Mr Vishnu Agarwal, Director (Finance), MRPL.

This COSA is significant for both ONGC and MRPL as it is a FIRST and also due to the parent- subsidiary relationship. The manner in which COSA was worked out further cements the strict Corporate Governance practiced by ONGC as the agreement was closed at ‘arms length’ and on par with the regulations applicable to OMCs.

This COSA covers supply of MH Crude from JNPT/JD and Offshore Platform. The approximate value of the crude envisaged to be supplied over a five year period is Rs. 38500 Crore. ONGC supplies about 11-12 % of MRPL’s crude requirement.

While acknowledging the contributions of Corporate Marketing Group, ONGC, Commercial Group, ONGC and International Trade Group of MRPL, Chairman and Board of Directors of ONGC and MRPL expressed their compliments on the occasion for a win-win situation.

ONGC has already signed the COSA with BPCL, HPCL, IOCL and CPCL and this marks the completion of COSAs with the major buyers of ONGC domestic Crude oil.