ONGC to charge premium over Brent in oil deals with BPCL and HPCL

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Bharat Petroleum Corporation Ltd (BPCL) and Hindustan Petroleum Corporation Ltd (HPCL) in which it will sell crude oil it produces from Mumbai offshore fields at a premium to international benchmark Brent. According to a news report, the oil has been priced at the prevailing Brent crude oil price plus 1%.

Brent, which is trading at $80, after the oil contract the ONGC would get $80 plus $0.8. ONGC produces 13-14 million tonnes per annum of crude oil from its fields in the Arabian Sea, off the Mumbai coast.

Market looks steady as global equities head towards big monthly gains In June last year, the government of India allowed firms like ONGC and Vedanta to sell locally produced crude oil to any Indian refinery for turning it into fuel, such as petrol and diesel, as it deregulated one of the last few avenues that were still under its control. While contracts for oilfields awarded since 1999 gave producers the freedom to sell oil, the government fixed buyers for crude produced from older fields, such as Mumbai High of ONGC and Ravva of Vedanta.

Oil scores first weekly gain in 5 weeks ahead of OPEC+ decision; Brent at $80 However, from June 2022 onwards, the oil companies have the freedom to sell crude oil in the domestic market. The old rule had led to producers such as ONGC and Oil India not getting the best market price.

After that rule change, ONGC started quarterly auctions of crude oil produced from Mumbai High and Panna/Mukta fields in the western offshore. India's crude output up 1.3% to 2.5 MMT in October, imports rise after 4 months While the company got a slight premium over Brent in the initial auction, refiners like the Indian Oil Corporation (IOC) started seeking discounts equivalent to the one they got on