ADNOC has signed a MoU with the Indian Strategic Petroleum Reserves to examine the possibility of storing ADNOC crude oil at its underground oil storage facility in Karnataka, India.
The MoU stipulates that ADNOC could store crude in two compartments at Pardur, which has a total storage capacity of 17 million barrels.
The memorandum follows the arrival of the final shipment of the initial delivery of ADNOC crude to be stored in another ISPRL underground facility at Mangalore, which will store 5.86 million barrels of ADNOC crude oil.
ADNOC is the only foreign oil and gas company so far to invest by way of crude oil in Indian’s strategic petroleum reserves programme.
H.E. Dr Al Jaber, ADNOC Group CEO, says: ‘India is an important oil market and this agreement underscores the strategic energy partnership between the UAE and India that leverages the UAE and ADNOC’s expertise and oil resources.
‘It is our firm hope that we will be able to convert this framework agreement into a new mutually beneficial partnership that will create opportunities for ADNOC to increase deliveries of high-quality crude oil to India’s expanding energy market and helping India meet its growing energy demand and safeguard its energy security.’
H.E. Dharmendra Pradhan, minister of petroleum and natural gas skill development and entrepreneurship, Government of India, adds: ‘This MoU will allow ISPRL to explore, with ADNOC, opportunities related to the possible storage of ADNOC crude at Padur, which would help to significantly strengthen the country’s strategic petroleum reserves. This agreement reflects the strong bonds of cooperation between India and the UAE and provide a foundation for strengthening and expanding our strategic energy relationship.’
India is over 82% dependent on imports to meet its crude oil needs, around 8% of which is supplied by the UAE.