ADNOC is the only foreign oil and gas company, so far, to invest by way of crude oil in India’s strategic petroleum reserves program.
Benefits of the agreement:
India is an important oil market and the MoU underscores the strategic energy partnership between the UAE and India that leverages the UAE and ADNOC’s expertise and oil resources.
The agreement will allow ISPRL to explore, with ADNOC, opportunities related to the possible storage of ADNOC crude at Padur, which would help to significantly strengthen the country’s strategic petroleum reserves.
It also reflects the strong bonds of cooperation between India and the UAE and provides a foundation for strengthening and expanding the strategic energy relationship between the two nations.
ISPRL has already built 5.33 million tonnes of underground storage capacity at three locations – Visakhapatnam (1.33 million tonnes), Mangalore (1.5 million tonnes) and Padur (2.5 million tonnes), that can meet around 9.5 days of the country’s oil needs as per consumption data of last financial year.
In June 2018, the Union Government had announced the creation of two new reserves, a 4 million tonnes storage facility at Chandikhol in the eastern state of Odisha and an additional 2.5 million-tonne facility at Padur.