Strategic Oil Reserves Current Affairs
The Union Cabinet has approved signing of the Definitive Agreement on Oil Storage and Management between Indian Strategic Petroleum Reserve Ltd (ISPRL) and UAE’s Abu Dhabi National Oil Company (ADNOC).
Government’s this move aims at boosting India’s energy security by ensuring a strategic storage flow in for crude oil, from a government firm in Abu Dhabi for meeting unexpected future exigencies.
According to the Agreement
- ADNOC will fill up 0.81 MMT or 5,860,000 million barrels of crude oil at ISPRL storage facility at Mangalore, Karnataka.
- Out of the crude stored, some part will be used for commercial purpose of ADNOC, while a major part will be purely for strategic purposes.
- The investment by ADNOC is a major investment from UAE under the High Level Task Force on Investment (HLTFI). It is also first investment by UAE in India in the energy sector.
India being fastest growing economies and world’s third-biggest oil consumer, is building emergency storage in underground caverns to hold 36.87 million barrels of crude. It is equivalent to about 10 days of its average daily oil demand. This move aims to hedge against energy security risks as it imports most of its oil needs.
The Union Cabinet has approved the Memorandum of Understanding (MoU) between India and United Arab Emirates (UAE) to provide various services in the field of energy management and conservation.
The MoU was signed between the National Productivity Council (NPC), an autonomous body under the Department of Industrial Policy & Promotion (DIPP), Ministry of Commerce and Al Etihad Energy Services UAE.
- Under the MoU, the NPC will provide the following services: (i) Energy Assessment Services (ii) Training & Certification of Energy Auditors (iii) Demand Side Management.
- Meanwhile, Al Etihad ES will provide (i) Customer Support with UAE Government and Private owned organizations in the UAE (ii) Local support for Field Auditing Professionals (iii) local support for Training & Certification of Energy Auditors (iv) Support related to Demand Side Management of industries.
- The MoU will enable NPC avail high value opportunities such as energy building and develop institutional mechanism in area of energy efficiency in Dubai and other GCC member countries.
- It will provide recognition and exposure to further build NPC’s capacities and competencies in rapidly changing international business scenario.
- The MoU will be precedent for NPC’s engagements with other International collaboration partners and will enhance its visibility in arena.