Tuesday, September 27, 2022

Under the new regulations, ONGC receives a higher oil price: Report

 

ONGC gets better price for oil under new rules: Report

NEW DELHI: Oil and Petroleum gas Corp has interestingly sold oil through a three-month nearby delicate, instructing $5-$8 per barrel more than existing rates under new guidelines that permit makers showcasing opportunity, industry sources said.


ONGC, the nation's top oil wayfarer, acknowledged offers at that level through closeout of light sweet oil from its western seaward field, including supplies from the country's lead Mumbai High fields, they said.


In June, India canceled a standard that expressed oil from blocks granted preceding 1999 should be offered to government-selected clients, generally state purifiers. That implied makers, for example, ONGC and Oil India frequently sold oil from those blocks at underneath market rates.


ONGC had offered 33 loads of 412,500 barrels each - 26 cargoes from Uran and seven cargoes from Mumbai seaward - available to be purchased beginning Nov. 1 at least 50-penny premium over the normal month to month cost of Brent, as per a delicate report seen by Reuters.


Western seaward resources, including the Mumbai High fields, represent around 70% of ONGC's yearly result of almost 20 million tons, or about 400,000 bpd.


All the cargoes were offered to state purifiers aside from one, which was granted to Dependence Enterprises Ltd, sources said.


State purifier Hindustan Oil purchased 15 cargoes; Mangalore Treatment facility and Petrochemicals purchased five; and Bharat Petrol Corp was the most noteworthy bidder for three, the sources said.


Indian Oil Corp, the nation's top purifier, got one freight while its auxiliary Chennai Oil Harvest was granted eight, the sources said.


Indian purifiers bid to pay a premium of $1.80-$1.85 per barrel for cargoes from Uran, where supplies get through a pipeline, $3.8-$6.5 per barrel for seaward cargoes and about $1.55 per barrel for a bundle from Panna Mukta field, they said.


Uran cargoes get a lower premium as neighborhood demands make the unrefined costlier than seaward supplies.


Sources said ONGC desires to get better support in ensuing tenders.


None of the organizations included answered Reuters' solicitations for remarks.


India, the world's third-greatest oil merchant and customer, imports over 85% of its oil, and bars unrefined products.

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