MRPL Signs Agreement to Utilize ISPRL’s Caverns

Mangalore Refinery and Petrochemicals Ltd (MRPL) has entered into a strategic partnership with Indian Strategic Petroleum Reserves Ltd (ISPRL) to utilize storage capacity in ISPRL’s caverns, enhancing MRPL's crude oil storage capabilities.

Mundkur Shyamprasad Kamath, Managing Director of MRPL, highlighted that the agreement will help mitigate risks associated with the volatility of global crude oil markets. By leveraging ISPRL’s existing storage infrastructure, MRPL avoids the high costs of constructing and maintaining standalone storage facilities. This allows the company to allocate capital to other critical areas, promoting operational efficiency and growth.

The partnership provides MRPL with the flexibility to store various grades of crude oil based on its operational needs, enabling the company to procure more economically viable and complex crude grades. This move is expected to strengthen MRPL’s bottom line while ensuring energy security.

Kamath also pointed out that the proximity of ISPRL’s caverns to MRPL’s refinery and the coast would reduce transportation costs and transit times. The partnership guarantees uninterrupted access to crude oil, even during global supply chain disruptions.

“This agreement is not merely a contract but a shared commitment to excellence and a promising future,” Kamath said.

The formal agreement was signed at MRPL’s office in Mangaluru by B Sudharshan, Executive Director (Refinery) of MRPL, and Atul Gupta, Deputy CEO (ISPRL), in the presence of Kamath and LR Jain, CEO and MD of ISPRL.

HBL