New Delhi: Oil and Natural Gas Corporation (ONGC) has incorporated a Joint Venture (JV) with its group companies Mangalore Refinery and Petrochemicals Limited (MRPL) and ONGC Petro additions Limited (OPaL) to market and trade the group's petrochemicals, the company said in a stock exchange filing on Thursday. The new company, ONGC Petrochemicals Marketing Limited (OPML), was incorporated as a public limited company on Wednesday.
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ONGC holds 50 percent of OPML, while MRPL and OPaL hold 25 percent each, according to the filing. The new company "shall undertake the business of integrated marketing and trading of petrochemicals, chemicals and kindred products," ONGC said.
According to the filing, OPML was set up "to establish a single integrated, market-facing platform for marketing and trading petrochemicals, chemicals and kindred products of the ONGC Group." That work would cover "branding, business development, pricing, distribution, logistics, customer management, sourcing/trading and sales and operations planning," the filing said. ONGC said the incorporation "is aligned with ONGC's existing downstream and petrochemicals business."
OPML has an authorised and subscribed share capital of Rs 50 crore, divided into 5 crore equity shares of Rs 10 each. ONGC and its nominee shareholders paid Rs 25 crore in cash to subscribe to 2.5 crore of those shares at face value.
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ONGC obtained approval for the venture from the Department of Investment and Public Asset Management (DIPAM) under the Ministry of Finance, the filing said. The Registrar of Companies under the Ministry of Corporate Affairs issued the certificate of incorporation on Wednesday.