The first equity cargo of Das Blend crude oil of ONGC Videsh arrives in New Mangalore
ONGC Videsh Limited (ONGC Videsh) – a wholly owned subsidiary of ONGC, the National Oil Company of India, announces the arrival of its first equity cargo of Das blend crude oil to New Mangalore. The Das blend crude oil originates from the Lower Zakum (LZ) oilfield in Abu Dhabi, which currently produces approximately 400,000 barrels per day. ONGC Videsh led Indian Consortium acquired 10% PI in Lower Zakum Concession through its Dutch Joint Venture Company- Falcon Oil & Gas BV. The Indian Consortium led by ONGC Videsh include BPRL and IOCL. Other shareholders in the LZ concession are ADNOC (60%), CNPC and JODCO (10% each) and TOTAL and ENI (5% each). It was the first time that Indian oil and gas companies have been given a stake in the development of Abu Dhabi’s hydrocarbon resources and the agreements were signed in Abu Dhabi on 10th February 2018 in the presence of Hon. Prime Minister of India. The commencement date of the concession agreement was from 9th March 2018 and is for a period of 40 years.
This first equity cargo of approx. 690,000 bbls which was loaded onto the vessel MT Wafrah on 2nd June 2018, was sold by ONGC Videsh for refining to MRPL, an ONGC Group company in the downstream business which operates one of India’s most modern and complex refineries. This sale to MRPL further demonstrates the commitment of the ONGC Group in enhancing the energy security for the nation.
Das blend crude with approx. 39.200 API is best positioned among the ONGC Videsh portfolio of equity crudes to flow to India. It is a grade of crude which is regularly bought by several Indian refiners. Also the shipping distance/voyage time to the west coast is short and can be lifted in a wide range of parcel sizes.