ONGC Videsh (OVL) is set to make a foray into oil trading and has signed an initial pact with the trading arm of Azerbaijan’s state energy company SOCAR, a source privy to the agreement said.
OVL, the overseas acquisition arm of India’s biggest explorer Oil and Natural Gas Corp, plans to initially sell its share of oil from the large Azeri, Chirag and Guneshli (ACG) group of fields in Azerbaijan through the new venture, the source said.
“At a later stage, OVL will look at opportunities to market its oil from other assets through the planned trading company with SOCAR,” the source added.
OVL, which has stakes in oil and gas assets in 16 countries including Russia, Sudan and Brazil, produced about 178,400 barrels per day of oil and gas equivalent in the fiscal year to March 31, 2016.
Currently, Mangalore Refinery and Petrochemicals Ltd , a subsidiary of ONGC, trade oil produced by assets of OVL.