Starting October 1: Nod for crude sale by home producers to any Indian refinery

Deregulating one of many previous couple of avenues that had been nonetheless underneath the federal government management, the Union Cabinet on Wednesday allowed companies like ONGC and Vedanta to promote regionally produced crude oil to any Indian refinery for turning it into gasoline.

While contracts for oilfields awarded since 1999 gave producers the liberty to promote oil, the federal government mounted patrons for crude produced from older fields, comparable to Mumbai High of ONGC and Ravva of Vedanta.

Briefing reporters after the Cabinet meet, Information and Broadcasting Minister Anurag Thakur mentioned from October 1, corporations could have freedom to promote crude in home market.

This would imply that ONGC can public sale its 13-14 million tonnes a yr of crude produced from Mumbai High area to any refiner, together with non-public sector Reliance Industries and Rosneft-backed Nayara Energy.

However, the ban on the export of crude oil will proceed.

ONGC at current has to promote the Mumbai High crude oil to state-owned Bharat Petroleum and Hindustan Petroleum. The state-run firm couldn’t promote the oil to its personal Mangalore refinery, which had conceived a petrochemical advanced on the premise that 5 million tonnes of Mumbai High crude could possibly be became value-added PTA and Benzene.