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India to get over 65% of Abu Dhabi's crude barrels in Mangalore storage

ADNOC will send three large ships carrying crude oil beginning April to fill half of the 1.5 million tonnes strategic oil reserves that India has built at Mangalore

Press Trust of India  |  New Delhi 

Crude oil, imports

will have the right over 65 per cent of 6 million barrels of oil that National Oil Company (ADNOC) will store at the country's maiden strategic storage at

will send three large ships carrying oil beginning April to fill half of the 1.5 million tonnes strategic that has built at Mangalore, a senior government official said.

Out of the stored, 35 per cent can be used by for commercial purposes, ie trading or selling to refiners whenever it wants. The remaining 65 per cent would be for the strategic purpose of meeting India's oil need during a contingency like supply disruption, he said.

"will of course be paid for the oil if were to draw from the reserves," he said.

(ISPRL), a special purpose vehicle created by the government, has built around 39 million barrels (5.33 million tonnes) of strategic storage at three locations -- Padur and on the western coast and Visakhapatnam on the eastern coast. Oil stored in the underground rock caverns at the three locations are to be used in an emergency and can meet the country's needs for 10 days.

India, which imports over 80 per cent of its oil needs, is among the select league of nations that have built strategic storages to meet emergency needs.

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). At Mangalore, oil is stored in two compartments with a total storage capacity of 1.5 million tonnes (11 million barrels), he said.

While one compartment has been filled with through funds made available by the government, the other compartment will be filled with crude supplied by ADNOC, he said.

ADNOC earlier this month signed an agreement to store at the underground caverns during the visit of Prime Minister Narendra Modi to

The Visakhapatnam facility can meet two-and-half days oil need of the country while Mangalore can meet 2.8 days requirement. Padur can meet 4.7 days requirement, he said.

India imports over 80 per cent of its crude oil needs, out of which about 8 per cent is supplied by the UAE.

ADNOC hired the Mangalore storage just as it ended a contract to store 6 million barrels of crude oil at Korea National Oil Corp's Yeosu facility in the country's southwest coast. South Korea had first right over the oil in the event of a supply emergency.

The official said it would take three very large crude carriers (VLCCs) to fill 5.86 million barrels or 0.75 million tonnes of space ADNOC has taken in Mangalore.

First Published: Wed, February 21 2018. 17:11 IST