New Delhi, Oct 01: State-run ONGC and Hindustan Petroleum (HPCL) on Tuesday signed an agreement for supply of crude oil from the upstream giant's fields to HPCL's Mumbai and Vizag refineries. According to a press release, the MoU was signed by ONGC director (finance) R S Sharma and HPCL director (finance) C Ramulu, a release said here. The agreement is for supply of ONGC's Mumbai High crude to HPCL'S Mumbai and Vizag refineries and ONGC Rajahmundhry Asset crude to Vizag Refinery for a period of two years effective April 1, 2002. It provides for pricing basis of ONGC's sweet crudes which have been benchmarked to Nigerian sweet crude, Bonny Light, considering products yields of both ONGC crudes and Bonny Light on month-to-month basis. ONGC has already signed MoUs with Indian Oil (IOC) and Bharat Petroleum (BPCL) on similar principles.

The average crude price, based on MoU signed with HPCL for the year 2002-03 is about $29.6 per barrel, and for the period April-August 2003, $29.4 per barrel.
"With this, ONGC has finalised market determined pricing with all its customer refineries for the period from April 2002 to March 2004," the statement said. Bureau Report