ONGC Backs MRPL's Saudi Crude Imports with $500 Million Guarantee

Oil and Natural Gas Corporation (ONGC) has stepped in to support Mangalore Refinery and Petrochemicals Ltd's (MRPL) crude oil imports from Saudi Arabian Oil Company (Saudi Aramco). The state-owned energy giant has approved a parent company guarantee of $500 million, or approximately Rs 4,789 crore, on behalf of MRPL.

The guarantee will remain valid for two years, from September 1, 2026, to August 31, 2028. This move is expected to bolster MRPL's crude supply flexibility amid volatility in global oil markets and supply-chain uncertainties.

MRPL has made efforts to diversify its crude sourcing, with access to a basket of 273 crude grades sourced from different regions. The company has processed more than 116 varieties over the years, which has helped it maintain uninterrupted refinery operations.