The loading of the first crude consignment was witnessed by petroleum minister Dharmendra Pradhan who is now on a visit to the gulf nation.
Union Minister of Petroleum and Natural Gas Dharmendra Pradhan on Sunday said that the United Arab Emirates (UAE) is the first country to invest in Indian Strategic Petroleum Reserves Limited (ISPRL) which will boost strategic relationship of both countries.
According to a 12 May Indian government statement the loading of the first crude consignment was witnessed by petroleum minister Dharmendra Pradhan who is now on a visit to the gulf nation.
USA president Donald Trump on Tuesday reneged on an worldwide nuclear accord and announced renewed sanctions against Iran. Also, there has been a rally in worldwide crude oil prices due to a combination of factors such as Opec and Russian Federation cutting supplies, falling production in Venezuela and geopolitical tensions. Under the agreement, ADNOC will store about 5.86 million barrels of crude oil in the cavern in Mangaluru at its own cost.
Dr. Sultan Ahmed Al Jaber, UAE minister of state and ADNOC Group CEO, said: "Given the projected increase in demand for petrochemicals and higher value refined products, we are repositioning ADNOC to become a leading global downstream player".
Like state-run Aramco, the world's biggest oil exporter, Adnoc is seeking to strengthen ties with refineries in Asia to lock up market share in the region driving growth in global oil demand.
ADNOC's existing and sizeable downstream portfolio comprises eight companies processing 10.5bn standard cubic feet (scf) of gas per day, and with a refining capacity of 922,000 barrels per day (bpd) of condensate and crude.More news: Kelechi Iheanacho scores as in Tottenham 5 Vs Leicester City 4
Abu Dhabi National Oil Company IN UAE is large crude producers, including Saudi Arabia and Kuwait in the Middle Eastern that are augmenting refining and petrochemical capacity to augment and diversify revenue. Minister Pradhan was accompanied by Ambassador Navdeep Suri, senior officials and CEOs for Indian Oil, Bharat Petroleum and Hindustan Petroleum.
The Agreement with ISPRL also allows ADNOC to sell part of the crude oil to Indian refineries on a commercial basis while adhering to mutually agreed minimum crude storage which is for the exclusive use of the Indian government.
Earlier, Pradhan had said that under the leadership of Prime Minister Narendra Modi, India has made tremendous strides in providing energy justice to all.
This will be the first such investment by any foreign company in the Indian SPR facility.
"The strategic reserve will provide a boost to India's energy security and help us deal with supply side disruptions".