ONGC okays $500 mn PCG for MRPL for Saudi Aramco crude import
ONGC approved a $500 million parent company guarantee for MRPL to import Saudi Aramco crude from September 1, 2026 to August 31, 2028.
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What happened: ONGC board approval of a PCG to support MRPL’s Saudi crude imports
ONGC approved a $500 million parent company guarantee (PCG) in favour of Saudi Aramco on behalf of ONGC’s subsidiary, Mangalore Refinery and Petrochemicals Ltd (MRPL). The PCG is designed to enable MRPL to import crude oil from Saudi Aramco for a fixed period from September 1, 2026 to August 31, 2028 (roughly two years).
ONGC stated that the decision was made at an ONGC board meeting and that it disclosed the approval in an exchange filing.
Background and earlier position: Why refiners use credit support tools
Refineries rely on steady crude procurement to maintain planned operations. Cross-border crude supply contracts often involve supplier concerns about payment assurance, especially when delivery extends over a long time window. Credit support instruments like a parent company guarantee are used to reduce payment risk for the supplier.
What changed now: A time-bound PCG connected to a two-year Saudi import window