Enar — multipurpose one / multi page template
The Oil Exchange is a process of purchase and selling of petroleum products between oil companies where an Oil Marketing Company (OMC) supplies petroleum products in regions where it does not have its own presence. Oil exchanges are a regular feature of the operations of OMCs. The cost of this manual process of settlement / reconciliation of a large volume of petroleum products runs into crores of Rupees and requires a settlement time of several months.
At the end of every month, a settlement is carried out based on paper based Joint Certificates with each participating company. This involves reconciliation of total products sold / purchased from each other and consequently financial settlement for arriving at the amount payable / receivable.