Mangalore,Aug.06:.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 MrYash Malik, GGM – Chief Marketing, ONGC and MrPankajAgarwal, GM (IT) MRPL in the presence of ShriSudhirVasudeva, 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.
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.
This COSA between ONGC and MRPL has been concluded for the first time. Until now, sales were effected through an MOU signed in March, 2003. However, the MoU expired on March 31, 2004 after which it became important for the two entities to enter into a full-fledged commercial agreement governing sale of crude oil. Corporate Marketing Group, ONGC and Commercial Group, ONGC under the leadership of Mr S. K. Thamilselvan, GM (P) Head, Marketing and Mr V. K. Saxena, GM (F), Chief, Commercial respectively negotiated with the International Trade Group, MRPL headed by MrPankajAgarwal, GM (IT) and finalised the COSA. The COSA was approved by the managements of both the companies during June - July, 2013.