UAE's Adnoc to store crude in India's strategic facility; to give two-third of oil for free

Discussion in 'Foreign Relations' started by Vishwarupa, Feb 11, 2016.

  1. Vishwarupa

    Vishwarupa Senior Member Senior Member

    Sep 15, 2009
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    NEW DELHI: In a first of its kind deal, UAE's national oil company Adnoc has agreed to store crude oil in India's maiden strategic storage and give two-third of the oil to it for free.

    India, which is 79 per cent dependent on imports to meet its crude oil needs, is building underground storages at Visakhapatnam in Andhra Pradesh and Mangalore and Padur in Karnataka to store about 5.33 million tonnes of crude oil to guard against global price shocks and supply disruptions.

    Abu Dhabi National Oil Company (ADNOC) is keen on taking half of the 1.5 million tons Mangalore facility, Oil Minister Dharmendra Pradhan said today.

    It will stock 0.75 million tons or 6 million barrels of oil in one compartment of Mangalore facility. Of this, 0.5 million tons will belong to India and it can use it in emergencies. Adnoc will use the facility as a warehouse for trading its oil.

    The 1.33 million tons Visakhapatnam storage and 2.5 million tons Padur stockpile tog ..

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