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Abu Dhabi oil co to fill half of Mangalore oil reserves

Press Trust of India  |  New Delhi 

National Company (ADNOC) will send three large ships carrying beginning April to fill half of the 1.5 million tonnes strategic reserves has built at

said ADNOC last week signed an agreement to use half of the underground storages built at as part of emergency stockpile.

ADNOC has indicated its for next two months are booked and it would start filling the storage it has taken from April, he said.

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

The storage would be filled by May, he said.

ADNOC had last year given up its crude storage lease in and instead agreed to store oil at Mangalore in a bid to establish ground presence in world's third largest oil consuming nation.

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.

Indian Strategic Reserves Ltd (ISPRL) has built around 39 million barrels (5.33 million tonnes) of strategic storage at three locations -- Padur and Mangalore on the western coast and Visakhapatnam on the eastern coast.

The oil stored in the underground rock caverns at the three locations are to be used in an emergency.

"currently has storages that can meet requirement for 66 days. The strategic storages can meet requirement of 10 more days," Pradhan said.

The can meet two-and-half days need while Mangalore can meet 2.8 days requirement. Padur can meet 4.7 days requirement, he said.

The Strategic Reserves (SPR) at Mangalore consists of 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 by crude supplied by ADNOC, he said.

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.

had first right over the oil in the event of a supply emergency.

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).

(This story has not been edited by Business Standard staff and is auto-generated from a syndicated feed.)

First Published: Tue, February 13 2018. 17:30 IST