Crude Oil Sales Agreement (COSA) was renewed between energy major Oil and Natural Gas Corporation (ONGC) and Mangalore Refinery and Petrochemical Limited (MRPL) on 3 August at Mangaluru. This renewal will further strengthen the relation of the parent company and its subsidiary.
The genesis of this COSA was earlier the first ever COSA that was signed on 31 July 2013, for sale of nomination fields crude oil. It was effective from 1 April 2010 for five years till 31 March 2015, which was extended on same terms and conditions till 31 March 2018.
New COSA will be effective from 1 April 2018 for 5 years till 31 March2023 with a provision of extension of further three years on mutual agreement. It was possible to achieve this landmark due to team work of Corporate Marketing, Corporate Commercial and Corporate Legal.
The COSA was signed by ONGC’s CGM (P)-Chief Marketing Mr Sanjay Kumar and GGM (ITD) Mr Vijay Bhatnagar from MRPL’s side.
CMD, ONGC Mr Shashi Shankar, MD- MRPL Mr M Venkatesh, Director (Offshore) Mr Rajesh Kakkar, Director (Finance) Mr Subhash Kumar, Director (Refinery)-MRPL Mr M Vinay Kumar and other senior officers from MRPL and ONGC were present during the COSA signing. CMD congratulated team of officers from both the companies for the occasion.
MRPL, a subsidiary of ONGC is a 15 MMTPA refinery with capability to process light to heavy and sour to sweet Crudes with 24-46 API gravity. Presently, MRPL takes supplies of ONGC’s Mumbai High, Rajahmundry and EOA crude oil. Mumbai High supplies include FPSO supplies also. Total crude oil supplies to MRPL are close to 1 MMTPA.
The new COSA is a sweet reward for both the parties as the execution of this COSA is the culmination of two years of negotiations at different levels between the two companies. The negotiation committee of ONGC comprised of Chief Commercial, Chief Legal and Chief Marketing ably supported by their respective team of officers under the guidance of Director (Onshore) - I/c Marketing Mr S K Moitra.