The Hindu Business Line : ONGC signs pact with IOC to sell crude

AFTER a year's deadlock, Oil and Natural Gas Corporation (ONGC) on Thursday signed an agreement with Indian Oil Corporation (IOC) for supply of around ten million tonnes of crude oil to the latter's refineries. The price of crude is linked to global market prices.

The deal, which is effective from April 1, 2002, will improve ONGC's bottomlines by around Rs 3,000 crore per annum, since domestic refiners have been paying ONGC a provisional price of $21 per barrel for the latter's crude since April 2002 against an average crude procurement price close to $26 per barrel.

ONGC's crude oil would be benchmarked against West African Bony Light crude oil and would be priced on the monthly average price , officials said.

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ONGC signs pact with IOC to sell crude