Oil and Natural Gas Corporation (ONGC) has approved a parent company guarantee of $500 million (approximately ₹4,789 crore) in favour of Saudi Aramco to facilitate crude oil imports by its subsidiary, Mangalore Refinery and Petrochemicals Ltd. (MRPL). The guarantee, cleared by ONGC’s Board, will remain in force from September 1, 2026, to August 31, 2028, providing financial backing for MRPL’s crude procurement from the Saudi energy major.
The arrangement is intended to ensure uninterrupted crude supplies to MRPL while reinforcing the refinery’s procurement strategy amid evolving global energy markets. A parent company guarantee enables the refiner to secure crude cargoes without furnishing an independent financial guarantee, with ONGC standing behind its subsidiary’s payment obligations.
MRPL has been pursuing a diversified sourcing strategy to strengthen supply resilience. According to the company, it has access to 273 crude grades sourced from multiple regions worldwide and has processed more than 116 crude varieties, providing greater operational flexibility in responding to changing market conditions. During FY26, the refinery processed 16.774 million tonnes of crude oil and achieved 111.8% capacity utilisation, despite a planned shutdown of its Phase-II refinery complex during part of the year.
The latest guarantee underscores ONGC’s continued support for its refining subsidiary as it seeks to maintain supply security and operational stability while navigating volatility in the global crude oil market.
