NOC signs MOU with PetroChina on fuel supply

Kathmandu / October 28: Nepal Oil Corporation (NOC) and China National United Corporation (PetroChina) signed a Memorandum of Understanding (MoU) on supplying petroleum products into the country from the northern neighbour.

The MoU was signed in Beijing Wednesday. With this, NOC’s sole agreement with the Indian Oil Corporation (IOC) on the import of petroleum products has ended and a way has opened for NOC for importing petro products from China.

NOC has signed a MoU with PetroChina on importing petro products from China, said Nepal’s Ambassador to China Mahesh Maskey told the RSS. With this agreement, a way has been paved away for the country for importing fuel from the northern neighbour on long-term basis, he said.

NOC Executive Director Gopal Bahadur Khadka and PetroChina Vice President Mr Zhang Tong signed the MoU on behalf of respective sides, according to Ambassador Maskey.

Discussions held between the two sides before signing the MoU focused on effective operation of Nepal-China border and expanding roadways linking both neighbours. The Chinese side was positive on the matters.

The Chinese side was urged to supply fuel to Nepal at international market price. In response, the Chinese side said it was ready to deliver fuel to Nepal as per the end and assured of developing physical infrastructure and technical structures necessary for the same.

The MoU has stated that one third of the total fuel necessary in Nepal will be imported from China.

A separate contract was also signed for the expeditious delivery of 1,000 tonnes of petroleum grant assistance provided by China to Nepal as a goodwill gesture, the Nepali Embassy in China said in a press statement. RSS