Naphtha exchange between ONGC Group companies MRPL and OPaL to build synergy on arm’s length
A vessel with a parcel of 35,000 Metric Tons (MT) of Naphtha has been flagged off by ONGC Group Chairman Subhash Kumar from ONGC subsidiary Mangalore Refinery and Petrochemicals Limited (MRPL) for delivery to ONGC Petro-additions Limited (OPaL), in a virtual event on 28 September 2021. This exchange between two companies within ONGC Group is a display of ONGC’s successful synergy-building efforts within its diversified group. The trial parcel from MRPL to OPaL is an exemplary step as Naphtha is an essential feed for OPaL and MRPL has been exporting Naphtha due to subdued demand in MRPL zone of operation.
First Naphtha parcel from MRPL to OPaL
The long term tie-up between MRPL and OPaL for Naphtha supplies is under pipeline. The formalization of this is expected to be a win-win situation for both the companies. ONGC CMD Subhash Kumar lauded the collaboration and graced it as the first step towards synergy between two group companies of the energy major. He expressed optimism over more steps to be taken in the direction as “there is both the need and room for collaboration between the group companies”.
“ONGC has embarked on a strategy for increased integrations between group companies, which include getting companies from a particular vertical together for yielding rich dividend and revenues in terms of improving bottom line of all the group companies to a new high, following the Arm’s length principal to the core,” said Mr Kumar.
CMD Subhash Kumar virtually flagging of the landmark event
Mr Kumar also noted that the focus area of synergy collaboration should be driven with simplification along with scale. “As there is rapid change been observed in petroleum and petro-chemical world, the complexities across businesses need to be simplified for effective response and faster and impactful reaction. This will aide in bringing agility and spur faster decision-making across the group,” he said.
MRPL Managing Director M Venkatesh informed about the potential for Future Synergy between MRPL and OPaL. He mentioned that it is a landmark initiative that the two companies united to narrow down the analysis on the requirements of OPaL and figured out the specifications, especially regarding shipping and packaging. Mr Venkatesh assured that all issues have been resolved and lauded the patience displayed by Opal. He further noted that the days of low capacity operations are over and MRPL will be hitting more than 100% capacity by October, which will further ease up the exchange of Naphtha parcels to OPaL. MRPL MD thanked ONGC CMD Subhash Kumar for his continuing support which led to the successful execution of the endeavor.
Executives of the group companies attending the event virtually
Managing Director of OPaL Avinash Verma lauded MRPL efforts towards reassuring support to OPaL. Wishing that the partnership be long-term, he said, “This is the first step in the long journey of cooperation between the two organizations. I hope in future more quantity of Naphtha being exchanged from MRPL.”
Congratulating both the companies, the Group Chairman Subhash Kumar said, “I expect the group companies to explore more of such product/feed stream exchanges and other areas for mutual growth through collaboration.”