ONGC planning to set up trading unit for crude & refined fuels of group cos

NEW DELHI: State-owned ONGC is planning to set up a trading unit for the crude and refined fuels of its group companies, a top executive at ONGC Videsh Ltd (OVL) said at an industry event.

OVL is the overseas investment arm of ONGC and annually produces about 10 million tonnes of oil through its assets. The plan is at a preliminary stage and “an internal group has been formed to discuss and look into the modalities, including legal issues,” said Rajarshi Gupta, MD at ONGC Videsh. The trading unit will help ONGC look at sales and purchase of crude oil and refined fuels, Reuters reported.

ONGC annually produces about 42 million tonnes of oil, while its refining subsidiaries Hindustan Petroleum Corp and Mangalore Refinery and Petrochemicals together import about 45-50 million tonnes. “We control about 100 million tonnes of oil within the group,” said Gupta.