First equity crude of OVL arrives at New Mangalore Port

MANGALURU: The first of approximate 7-lakh barrels of Das blend crude oil of () arrived at on Friday. The Das blend crude originates from the Lower Zakum oilfield in Abu Dhabi, which currently produces approximately 4-lakh barrels per day. This crude is part of hydrocarbon resources to which Abu Dhabi has granted access to India as part of an agreement that PM Narendra Modi signed during his visit to UAE on February 10.

The Das blend, a medium sulphur variety of crude will be refined at Mangalore Refinery and Petrochemicals Ltd (MRPL), a subsidiary of ONGC. OVL led Indian consortium has acquired 10% productivity index in Lower Zakum concession through its Dutch JV company – Falcon Oil and Gas BV. The Indian consortium led by OVL includes, Bharat Petro Resources Ltd (BPRL) and Indian Oil Company Ltd (IOCL), noted Shashi Shanker, CMD, ONGC.

Describing the arrival of OVL for refining at MRPL as yet another step towards ensuring India’s energy security needs, ONGC chief told reporters here that it is for the first time that an Indian oil and gas company has been given a stake in the development of Abu Dhabi’s hydrocarbon resources. The commencement date of the concession agreement as per February 10 deal signed by PM Modi is from March 9 and is for a period of 40-years, he said.

OVL has sold the crude to MRPL for refining, Shanker said, adding it demonstrates commitment of ONGC group in enhancing energy security for India. “Since MRPL is our company in to the downstream business, OVL has sold the crude to them,” he said, adding OVL, the overseas arm of ONGC could consider selling the crude to other refiners as well. “Das Blend is best positioned among the OVL portfolio of equity crude flows to India,” the ONGC chief added.

Narendra K Verma, MD and CEO of OVL said preference will be given to MRPL and HPCL, which ONGC has since acquired for the Das crude. Since the shipping distance and voyage time to the West Coast is short, OVL can lift this crude in a wide range of parcel sizes, he said adding the company normally trades crude in other offshore assets in the international market and sources crude from closer home to drive home economies of scale.

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