New Delhi, (IANS) : In a move to boost India’s energy security, the Union cabinet on Monday gave post facto approval for signing of an agreement that will see crude oil for strategic storage flow in from a state-run company of Abu Dhabi for meeting unexpected future exigencies.
“According to the agreement between Indian Strategic Petroleum Reserve Ltd (ISPRL) and Abu Dhabi National Oil Company (ADNOC) of UAE, ADNOC will fill up 0.81 million tonnes, or 5,860,000 million barrels of crude oil, at ISPRL storage facility at Mangalore, Karnataka,” a Petroleum Ministry statement here said.
“Out of the crude stored, some part will be used for commercial purpose of ADNOC, while a major part will be purely for strategic purposes,” it said.
“India and UAE are strategic partners. The investment by ADNOC is a major investment from UAE, and the first investment by UAE in India in the energy sector,” it added.
UAE contributes in a major way to India’s energy security, being the sixth-largest supplier of crude oil. India is the second-largest destination for UAE’s oil exports.