India will lease a quarter of its strategic petroleum reserves to Saudi Aramco to store 4.6 million barrels of oil.
The agreement between Saudi Aramco and the government's oil storage company Indian Strategic Petroleum Reserves, concerns the company's Padur storage facility in Karnataka, and taking one of four storage compartments.
The UAE has also contributed to strategic reserves in India. The Middle East unit of Indian Oil signed a preliminary deal with Saudi Arabi's Al Jeri Transport Company for cooperation in the downstream sector.
According to local news reports, Saudi Aramco is currently evaluating its Indian investments and thinks that buying the government's stake in Bharat Petroleum as a good opportunity.