The first shipment of crude oil from Abu Dhabi National Oil Company (ADNOC) arrived to be stored at Indian Strategic Petroleum Reserves Ltds (ISPRL) underground facility under an agreement signed last year
The shipment of about 2mmbbl arrived in Mangalore after six days of transport from Abu Dhabi.
Under the agreement, ADNOC will store about 5.86mmbbl of crude oil at India's oil reserve in Mangalore.
India, which imports 82 per cent of its crude oil needs, is looking to build up its reserves to weather commodity price shocks and service growing demand as it expands its economy.
Oil prices have climbed steeply this year as production cuts from OPEC and countries like Russia have weighed heavily on market oversupply.
The rise in crude oil prices has led to higher prices at petrol pumps in India, prompting sharp criticism from consumers and opposition parties.
“Our teams, from ADNOC and ISPRL, have worked tirelessly to ensure the successful implementation of this important strategic project. ADNOC is already a trusted and reliable supplier of crude oil and refined products to many customers and partners in India, and we are proud to deepen this longstanding relationship through another important and strategic collaboration,” Abdulla Salem Al Dhaheri, ADNOC’s director of marketing, sales and trading, said.
“Today's unloading of ADNOC crude oil marks another important milestone for ISPRL, as we deliver on our mandate of establishing strategic crude oil storage facilities that enhance India’s energy security and serve as a cushion during any external supply disruptions. Our agreement with ADNOC builds on the rich history between our nations and opens new opportunities for further partnership and engagement between the UAE and India, one of the world’s fastest-growing economies,” HPS Ahuja, CEO, ISPRL, said.
