State-owned Oil & Natural Gas Corporation (ONGC), on Thursday, entered into a Memorandum of Understanding with Hindustan Petrochemicals Limited (HPCL), for supply of its petroleum products to HPCL. 

ONGC will do so through its subsidiary Mangalore Refinery & Petroleum Products (MRPL) and its Tatipaka Refinery after meeting its own and customers’ requirements.

HPCL in return will give ONGC and MRPL access to its terminal and infrastructure facilities in and around Mangalore as well as other places in the southern part of the country. Under the MoU, the three entities will share their respective infrastructure and expertise as well.

The MoU was signed by ONGC Chairman & Managing Director R S  Sharma and HPCL Chairman Arun Balakrishan in the presence of MRPL Managing Director R Rajamani.

Rail, road services
HPCL, in turn, will provide road and rail terminalling services under hospitality arrangements from HPCL’s Mangalore, Hassan and  Devanagunthi Terminals and LPG Import Facility at Mangalore (MLIF).

Oil & Natural Gas Corporation and MRPL will also have access to HPCL’s Aviation Turbine Fuel (ATF)  handling facilities at Bangalore, Calicut and Goa. HPCL will supply petrol and diesel and extend infrastructure services to ONGC for delivery to MRPL’s retail outlets.

Mutual collaboration
In turn, ONGC will supply products (from its Tatipaka refinery) to HCPL customers in Visakhapatnam, Rajamundry, Vijayawada and  Suryapet in Andhra Pradesh and Ghatkesar, Mumbai and Vashi in Maharashtra for evacuation and marketing by HPCL.

In addition both HPCL and ONGC have agreed to collaborate with each other in oil exploration, refining, marketing, infrastructure development, petrochemicals and other energy-related activities both within the country and abroad.

These collaborations can be carried out either directly or through their joint venture companies or subsidiaries,  ONGC official said.