ONGC, OIL Renew Agreement For Assam Crude Movement

New Delhi: Oil and Natural Gas Corporation Ltd (ONGC) and Oil India Ltd (OIL) on April 25, renewed their memorandum of understanding (MoU) for transportation of ONGC''s Assam crude oil from its installations at Lakwa, Galeki, Rudrasagar and Borholla via pipelines owned and operated by OIL. This MoU will be valid for five years from April 2007 to March 2012. Both companies accorded that this MoU will be converted into an agreement COTA (crude oil transportation agreement) in six months. ONGC and OIL are the two major crude oil producers operating together for more than 50 years in the North East region of India. They produce around 4.5-5 million tonnes per annum which is transported to four refineries of Indian Oil Corporation and Bharat Petroleum Corporation Ltd located at Digboi, Numaligarh, Guwahati and Bongaigaon via the trunk pipeline of OIL. ONGC pumps its Assam crude into this trunk pipeline at two locations, one at Moran near Sivasagar and other at Jorhat.