Nepal Oil Corporation (NOC)
Nepal Oil Corporation (NOC) is a government-owned company responsible for importing, storing, and distributing petroleum products in Nepal. No private companies are allowed to import petrol or diesel. NOC was established in 1970 under Nepal’s “Company Act, 2021 (1964).” The government owns 99.46% of the company, while the rest is shared by four other state-owned organizations: Rastriya Beema Sansthan, National Trading Ltd., Nepal Bank Ltd., and Rastriya Banijya Bank.
History
NOC started small, storing oil in just two drums under the leadership of the late Mr. Subarna Bikram Thapa. Thanks to his efforts, the company now has over 30,000 kilolitres (kL) of storage facilities across Nepal. Since Nepal is a landlocked country, it relies entirely on imports to meet its fuel needs. Most petroleum products are supplied through a long-term agreement with Indian Oil Corporation (IOC), a major oil company in India.
Operations and Infrastructure
NOC is based in Kathmandu and operates through seven provincial offices, three branch offices, two fuel depots, one petrol pump, and ten aviation fuel depots. It has a total storage capacity of 71,558 kilolitres (kL) and employs 872 permanent staff members along with contract workers. The company is managed by a board of directors, mostly government officials, along with one expert chosen by the government.
Motihari-Amlekhgunj Oil Pipeline
The Motihari-Amlekhgunj pipeline is a 69-kilometre (42.9-mile) pipeline that brings oil from Motihari in India to Amlekhgunj in Nepal. It has made oil transportation faster, safer, and more efficient. This is the first cross-border pipeline in South Asia and is operated by Indian Oil Corporation. It was officially inaugurated on September 10, 2019, by the Prime Ministers of India and Nepal.