The UAE’s national oil company Abu Dhabi National Oil (ADNOC) Company has agreed to store crude oil in India’s maiden Strategic Petroleum Reserves (SPRs) storage.
It will be first of its kind deal in which India has partner with other country for storing crude oil in the SPR storage for emergency purpose.
Strategic Petroleum Reserves: India is building underground SPR storages at Visakhapatnam (1.33 million tonnes capacity), Mangalore (1.5 million tonnes) and Padur (2.5 million tonnes) to store about 5.33 million tonnes of crude oil. These SPRs will act as a valuable buffer against short term oil supply disruptions and global price shocks as India is 79 per cent dependent on imports to meet its crude oil needs.
- UAE has agreed to give two-third of the oil to it for free for this purpose. Presently India imports upto 8 per cent of crude oil from UAE.
- ADNOC is keen on taking half of the 1.5 million tonnes Mangalore SPR facility. It will stock 6 million barrels or 0.75 million tons of crude oil in one compartment of this facility.
- Of this, 0.5 million tons of stored crude oil will belong to India and it can use it at the time of emergencies.