ONGC approves guarantee to MRPL to import crude oil from Saudi Aramco

State-owned Oil and Natural Gas Corporation (ONGC) on Tuesday approved a parent company guarantee of $500 million in favour of Saudi Arabian Oil Company (Saudi Aramco) on behalf of its subsidiary, Mangalore Refinery and Petrochemicals Ltd (MRPL), to facilitate crude oil imports.

The guarantee will remain valid for a two-year period from September 1, 2026, to August 31, 2028, ONGC said in a regulatory filing.

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The renewed instability in West Asia and escalating Houthi attacks on commercial shipping in the Red Sea have revived concerns over India's energy security and import costs, even as crude prices have eased from recent highs.

India, which imports nearly 90% of its crude oil requirement, remains highly vulnerable to disruptions across key maritime trade routes. While refiners have diversified away from the Strait of Hormuz—with the Red Sea now carrying around 14% of India's crude imports and serving as the primary route for Saudi oil—a prolonged escalation could still raise freight, insurance and procurement costs.

The parent company guarantee will enable MRPL to continue importing crude oil from Saudi Aramco, one of its key overseas crude suppliers.

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