Indian Oil Corporation (IndianOil) has signed a memorandum of understanding to supply petroleum products to Nepal Oil Corporation (NOC) for a further five years.
The MoU was signed in the presence of Indian Minister of State Petroleum and Natural Gas Dharmendra Pradhan and Minister of Supplies of Nepal Deepak Bohara and senior officials.
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IndianOil has been supplying petroleum, oil and lubricants (POL) to NOC since 1974 when the first supply agreement was signed, which has been renewed periodically.
The latest agreement has been signed for the period of April 2017 to March 2022.
This agreement will enable NOC to meet its requirements of all major POL products, including petrol, diesel, kerosene, aviation turbine fuel and LPG.
The new agreement is based on the concept of ‘Umbrella Agreement’ by keeping the provisions of future MoUs / agreements subsidiary to this.
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By GlobalDataThere is a provision for collaboration in new fields such as engineering, projects, aviation fuelling, retail sales, petrochemicals, business developments and LPG ventures.
Under the new agreement, IndianOil will supply BS-IV grade fuels to Nepal from 1 April to assist the Himalayan country in opting for greener fuel.
The deal also meets the major requirements of POL products of Nepal after the laying of the Patna-Motihari-Amlekhganj Pipeline. This pipeline will have the flexibility to receive products from IndianOil's Barauni & Haldia refineries.
NOC can choose to have any other supply point to boost POL products after a written notification to IndianOil.
