Abu Dhabi: Indian Oil Minister Dharmendra Pradhan along with Abu Dhabi National Oil Company (Adnoc) CEO Dr Sultan Al Jaber flagged off the first consignment of Adnoc crude that will be stored in India’s Strategic Petroleum Reserves at Mangalore.
According to a tweet by Pradhan on Saturday, 2 million barrels of crude from Abu Dhabi has set sail for India’s Strategic Petroleum Reserves (SPR).
Adnoc will store a total of 5.86 million barrels of crude in the SPR facility at its own cost. This is the first investment by a foreign company in India’s strategic reserves programme.
"The vessel ‘New Inspiration’ carrying 2 million barrels of crude for Mangalore cavern to build India’s emergency stockpile is a true inspiration for enhanced energy engagements between the two countries,” Pradhan tweeted.
He also said, “India looks towards UAE as a preferred partner in further developing oil & gas infrastructure in the country. Ease of doing business, opening up of Indian E&P sector due to policy reforms & a stable govt. makes India a profitable investment destination in the oil & gas sector.”
India and the UAE energy ties have been strengthening recently. Abu Dhabi and India’s Oil and Natural Gas Corporation (ONGC)-led consortium signed a 10 per cent offshore concession agreement in February, marking the first-time Indian oil and gas companies have been given a stake in Abu Dhabi’s hydrocarbon resources.
The consortium, led by India’s ONGC Videsh, contributed a participation fee of Dh2.2 billion ($600 million) to enter the Lower Zakum concession, which will be operated by the Adnoc Offshore, a subsidiary of the Abu Dhabi National Oil Company (Adnoc), on behalf of all concession partners.