29 July 2026

ONGC guarantee for MRPL Saudi Aramco imports

This is a routine corporate financial transaction between a PSU and a foreign supplier that serves as a minor contextual example for India's energy security and bilateral trade relations, but lacks the significance to be a direct exam question.

Questions

1. Explain the role of Parent Company Guarantees (PCG) in facilitating international trade for public sector undertakings in India. How do such financial instruments mitigate risks in cross-border energy procurement? 150 words
   Attempt this — 150 words in 8 min

   0 / 150 words 8:00 Reset
2. Energy security remains a cornerstone of India's economic policy. In the context of India's reliance on crude oil imports, discuss the strategic significance of long-term supply arrangements with major oil-producing nations and the role of state-owned enterprises in securing these energy corridors. 250 words
   Attempt this — 250 words in 11 min

   0 / 250 words 11:00 Reset

Prelims

1. What is the primary purpose of the $500 million Parent Company Guarantee (PCG) approved by ONGC for MRPL?

   1. A To facilitate the import of crude oil from Saudi Aramco
   2. B To fund the expansion of MRPL's refinery capacity
   3. C To settle outstanding debt obligations of MRPL
   4. D To invest in renewable energy projects in Saudi Arabia

2. For what duration is the Parent Company Guarantee (PCG) provided by ONGC to Saudi Aramco valid?

   1. A Two years
   2. B One year
   3. C Three years
   4. D Five years