Vishaka Zadoo for Business Standard
April 15: In a bid to diversify its oil supply sources, Mangalore Refinery Petrochemicals Ltd has roped in the Abu Dhabi National Oil Company to supply up to 1.65 million tonnes of crude during the current year.
The Mangalore refinery, a subsidiary of Oil and Natural Gas Corporation (ONGC) has a capacity to process 9.69 million metric tonnes per annum and is the only Indian refinery to have two hydrocrackers producing premium diesel. It envisages a requirement of 12.5 million tonnes of crude for 2006-07.
The company plans to import high-sulphur crude oil from National Iran Oil Company, Saudi Aramco of Saudi Arabia and Adnoc of Abu Dhabi on a term-basis to take care of 9.35 million tonnes of its requirement.
The term supplies will be at the official selling price. The balance, which includes the requirement arising out of higher use of refining capacity, will be met through additional supplies from term contractors or through spot purchases, sources said. Last year, the Mangalore refinery did not approach spot markets.
The refinery will not import low-sulphur crude this year. It will meet its needs through indigenously produced crude oil from Mumbai High, the off-shore field of ONGC.
ONGC has a participating interest in the Sudan oil fields, it will also import crude from ONGC Nile Ganga BV, which is a wholly-owned subsidiary of ONGC Videsh Ltd, provided the price is affordable.
In 2005 OVL had completed construction of a 741-km-long pipeline connecting Khartoum refinery to Port Sudan.