Oil and Natural Gas Corporation has sought permission from the government to end the discount it offers on crude oil from its offshore assets to domestic state-run refiners, chairman and managing director Subir Raha said on Friday. | |
| "We have requested the government to discontinue the ongoing system of the oil ministry allocating ONGC's offshore oil to other state-owned refiners," Raha told reporters on the sidelines of an industry conference. |
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| Of ONGC's 17-million-tonne annual crude output from various offshore fields, it supplies 13 million tonne to Indian Oil and its subsidiaries, Hindustan Petroleum Corporation Ltd. and Bharat Petroleum Corporation. |
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| Raha said ONGC sells crude to state run refiners at $2-5 a barrel less than the landed cost of bonny light crude. Meanwhile, ONGC subsidiary Mangalore Refinery and Petrochemicals Ltd. imports crude for processing. Raha said the government had come out with a notification on March 31, 2002, to discontinue the allocation system, "but it has not been implemented thus far". |
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