Indian Oil Corp. has signed B2B framework agreements with Nepal Oil Corp.

One of the biggest oil companies in India, IndianOil is well-known for its refining, marketing, and distribution capabilities. In order to guarantee a consistent supply of fuel to meet the energy needs of millions of consumers, the company runs a massive network of refineries, pipelines, and fuel stations across the nation. In the petrochemicals industry, IndianOil is also becoming more and more prominent. It produces a broad variety of chemicals and polymers for different industries. IndianOil is still a major factor in the country’s economic development and energy security because of its dedication to sustainability and innovation.

IOC and NOC signed an agreement:

A Business-to-Business (B2B) Framework Agreement between Indian Oil Corporation and Nepal Oil Corporation was signed yesterday with the aim of developing vital petroleum infrastructure initiatives in Nepal. This opens the door for the advancement of vital petroleum infrastructure projects in Nepal. This agreement followed the May 31, 2023, signing of the previous Memorandum of Understanding (MoU) between the Ministry of Industry, Commerce, and Supplies (MoICS) of Nepal and the Ministry of P&NG of India.

The first transnational petroleum product pipeline in South Asia, the Motihari-Amlekhgunj Petroleum Pipeline (MAPL), was commissioned in 2019 and is being extended to Chitwan, Nepal as part of the G2G Memorandum of Understanding. The MoU also addresses the building of oil storage terminals in Chitwan and a new transnational pipeline that will connect an oil storage terminal in Jhapa with IndianOil’s Siliguri facility. It is anticipated that these projects will change the logistics of petroleum between the two nations. These pipelines, which have enough storage capacity at the Chitwan and Jhapa terminals, have been designed to meet Nepal’s future energy needs.

B2B agreement advantages for India and Nepal:

IndianOil and NOC are able to begin construction on these important projects thanks to the B2B Framework Agreement that was signed yesterday. By reducing reliance on tank trucks, this partnership will greatly minimize expenses for Nepal Oil Corporation by optimizing the transportation of petroleum products. In addition, the infrastructure is built to ease border traffic, mitigate losses and environmental risks, and improve Nepal’s energy security, particularly in the event of landslides and floods.

Indian Oil Corporation Ltd. stock is 2% down:

Indian Oil Corporation Ltd. stock is trading right now at Rs. 168.80 per share, which is almost 2% down today and Rs. 165.60 low traded.

Conclusion: The B2B agreement between Indian Oil Corporation and Nepal Oil Corporation aims to develop essential petroleum infrastructure initiatives in Nepal.

Disclaimer: This blog has been written exclusively for educational purposes. The securities mentioned are only examples and not recommendations. It is based on several secondary sources on the internet and is subject to changes. Please consult an expert before making related decisions.