India's leading oil and gas producer, Oil and Natural Gas Corporation (ONGC), has entered into term contracts with several refiners for the sale of crude oil that is produced from the company's offshore fields in Mumbai. This step marks a significant strategic move for ONGC, aiming at...
1. Oil and Natural Gas Corporation (ONGC), India's largest oil and gas producer, has entered into term contracts with several refiners to sell crude oil from its offshore fields in Mumbai.
2. This represents a significant strategic change for the company.
3. Instead of selling via tenders, a traditional method, ONGC has formalized contractual agreements with refineries.
4. This new approach is part of ONGC's strategy to transform how it conducts its business operations, particularly in the distribution of crude oil.
5. Through these contracts, ONGC aims to achieve increased stability in its customer relationships and pricing metrics.
securing a steady revenue stream, as it currently contributes to around 70% of India's domestic production of crude oil.
In a historic move, the Oil and Natural Gas Corporation (ONGC), India's leading producer of oil and gas, has formalized contractual agreements with refineries for the sale of crude oil procured from offshore fields located in Mumbai. This is a significant shift from the style of selling via tenders, a traditional method previously employed by ONGC. The new initiative points to the company’s renewed strategies aimed at revolutionizing the way it conducts its business operations, specifically in the realm of crude oil distribution. Through this new model, ONGC hopes to achieve greater stability in its customer relationships and pricing metrics.