Abu Dhabi National Oil Company (ADNOC) has signed an agreement to store about 6 million barrels of crude oil at India's maiden strategic oil reserve.
The agreement to store crude oil at the Mangalore underground caverns was signed on Saturday during the visit of Prime Minister Narendra Modi to Abu Dhabi, a statement issued by Indian Strategic Petroleum Reserves Ltd (ISPRL) said.
The pact, which was signed by HPS Ahuja, CEO & MD, ISPRL and Abdulla Salem Al Dhaheri, Director Marketing, Sales and Trading, ADNOC, envisages storage of 5.86 million barrels of crude by the UAE firm in the underground storage cavern.
Out of the crude stored, a part would be used for commercial purposes by ADNOC, while a major part would be purely for strategic purposes.
The oil stored in the underground rock caverns at the three locations are to be used in an emergency.
"The oil storage facility will help boost India's energy security, as well as enable ADNOC to efficiently and competitively meet market demand in India and across the fast-developing southeast Asian economies." it added.
While the Vishakhapatnam storage of ISPRL has a capacity of 1.33 million tonnes (9.77 million barrels) of crude oil, Padur can stock 2.5 million tonnes (18.37 million barrels).
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