Cabinet approves deal with ADNOC for strategic oil storage
New Delhi: India has approved a deal for Abu Dhabi National Oil Co (ADNOC) to fill part of a strategic oil storage facility, the government said on Monday.
India imports most of its oil needs and ADNOC will supply about 6 million barrels of oil to the facility in Mangalore. Part of the supplies will be for commercial use while most will be kept for strategic purposes, a government statement said.
India signed a deal with ADNOC in January to lease part of its Mangalore storage.
The government said it was ADNOC’s first major investment in India’s energy sector and would “augment India’s energy security”.
ADNOC will begin supplying the oil in the last quarter of this year, a government official told Reuters in January, and is expected to deliver Murban grade.
It is building emergency storage in underground caverns to hold 36.87 million barrels of crude, or about 10 days of its average daily oil demand in 2016. Reuters