Mangalore Refineries in $2-billion fuel supply deal with Mauritius
02 Jul 2010
Mangalore Refinery & Petrochemicals Ltd (MRPL), a subsidiary of state-run Oil and Natural Gas Corporation (ONGC), has signed an agreement with State Trading Corporation (STC), Mauritius for supply of 1.1 million tonnes per annum of liquid petroleum products. The contract, at current fuel price, is worth $660 million.
Under the agreement, MRPL will supply jet A1 (ATF) MoGas (95 RON), gas oil (HSD) and furnace oil (three grades) for a period of three years and the total value of the deal at current prices is about $2 billion.
UK Basu, managing director, MRPL, signed the agreement in the presence of STC Mauritius general manager Soomarooah, Mauritian minister of commerce and industries Showkutally Soodhun, India's minister for petroleum and natural gas Murli Deora and ONGC group chairman RS Sharma.
Speaking on the occasion, Showkutally Soodhun sought Indian assistance to help Mauritius achieve self-reliance in petroleum with a JV to set up and operate a refinery at in the country.
Murli Deora asked MRPL to ensure uninterrupted supply of fuels and timely delivery of all products. According to Deora, the ONGC group of companies through MRPL and Indian Oil's IOC Mauritius were doing well to expand cooperation.
The STC had first entered into the product supply agreement with MRPL for a one-year period for gasoil, jet A1, MoGas and FO in 2006, which was subsequently renewed for three more years in July 2007.
