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ONGC Videsh Ltd has signed an agreement with the trading arm of Azerbaijan’s state energy company SOCAR to foray into oil trading.
OVL’s share of oil from the Azeri, Chirag and Guneshi (ACG) group of field in Azerbaijan are going to be traded through the new venture.
According to a company statement the memorandum of understanding (MoU) has been signed on May 27 at Geneva.
It said that “The objective of the MoU is to explore possibilities of joint marketing of OVL’s crude oil portfolio by leveraging SOCAR Trading’s experience in oil trading.”
The company added that “Based on the performance of this agreement both parties will mutually agree to optimise price realization of other crudes from OVL’s portfolio either through joint marketing or joint venture route.”
