ONGC Videsh Ltd has announced 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, according to a company statement.
The Das blend crude is best positioned in its portfolio of equity crudes to flow to India, the statement said. It is a grade of crude that 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.
The OVL-led Indian Consortium had acquired a 10 per cent participating interest in Lower Zakum Concession through its Dutch Joint Venture Company — Falcon Oil & Gas BV.
First equity cargo
The Indian Consortium led by OVL includes BPRL and IOCL. Other shareholders in the LZ concession are ADNOC (60 per cent), CNPC and JODCO (10 per cent each) and TOTAL and ENI (5 per cent each). This first equity cargo, of approximately 690,000 barrels, was loaded onto the vessel MT Wafrah on June 2 was sold by ONGC Videsh for refining to MRPL.
This is the first time that Indian oil and gas companies have been given a stake in the development of Abu Dhabi’s hydrocarbon resources.
The agreements were signed in Abu Dhabi on February 10 this year. The commencement date of the concession agreement was from March 9 and is for a period of 40 years.