Indian Oil and Nepal Oil Corporation Sign B2B Framework Agreements

New Delhi: Indian Oil Corporation Limited and Nepal Oil Corporation (NOC) signed a Business to Business (B2B) Framework Agreement in the presence of Mr. Pankaj Jain, Secretary, Ministry of Petroleum and Natural Gas, Government of India, and Mr. V. Satish Kumar, Chairman and Director (Marketing), Indian Oil, paving the way for the development of critical petroleum infrastructure projects in Nepal.

The MoU was signed by Mr. Senthil Kumar N, Director (Pipelines) holding additional charge of Director (Planning & Business Development), Indian Oil, and Dr. Chandika Prasad Bhatta, Managing Director, NOC.

This agreement follows the Government-to-Government (G2G) Memorandum of Understanding (MoU) signed earlier between India’s MoP&NG and Nepal’s Ministry of Industry, Commerce and Supplies (MoICS) on May 31, 2023.

Mr. V Satish Kumar, Chairman and Director (Marketing), Indian oil, stated, “We are proud to strengthen the India-Nepal energy partnership through this B2B framework between Indian Oil and Nepal Oil Corporation. This collaboration builds upon the success of the Motihari-Amlekhgunj pipeline and paves the way for seamless energy connectivity, enhancing energy security for both nations. IndianOil remains committed to the timely execution of these projects and fostering a stronger bilateral relationship.”

The G2G MoU encompasses the extension of the Motihari - Amlekhgunj Petroleum Pipeline (MAPL), South Asia's first transnational petroleum product pipeline, commissioned in 2019 to Chitwan, Nepal.

Additionally, the MoU covers the construction of oil storage terminals at Chitwan and a new transnational pipeline from Indian Oil’s facility in Siliguri to Jhapa alongside an oil storage terminal at Jhapa. These projects are expected to transform petroleum logistics between the two countries. These pipelines have been designed to meet the future energy needs of Nepal, with ample storage capacity at both the Chitwan and Jhapa terminals.

The B2B Framework Agreement signed enables Indian Oil and NOC to take up construction on these vital projects. This collaboration is crucial for optimizing the transportation of petroleum products, which will significantly reduce costs for Nepal Oil Corporation by minimizing reliance on tank trucks.

The signing of this B2B Framework Agreement marks the beginning of a new chapter in India, the Nepal energy partnership, further solidifying the long-standing people-to-people relationship between India and Nepal. Sd/- (Shyam Bohra) Executive Director I/c (CC, Branding & Coordination).