The Abu Dhabi National Oil Co (Adnoc) shipped its first cargo of 2 million barrels of crude oil destined for the Indian Strategic Petroleum Reserves (ISPRL) on Saturday.
The cargo is the first in an agreement between Adnoc and ISPRL, an Indian government company mandated to store oil for strategic needs, that will see a total of 5.86 million barrels of Adnoc crude oil stockpiled at the Karnataka facility in the Indian city of Mangalore.
“The strategic reserve project represents an important new energy partnership with India that leverages the UAE’ and Adnoc’s expertise and oil resources,” said Dr Sultan Al Jaber, UAE Minister of State and Adnoc Group chief executive.
Dr Al Jaber and Dharmendra Pradhan, Indian Minister for Petroleum and Natural Gas, witnessed the loading at a ceremony in Abu Dhabi.
“With this partnership, new market opportunities will open up for Adnoc as we not only help to ensure the energy security of the UAE’s largest trading partner but also gain access to one of the fastest-growing markets for high-quality crude oil. Our increased presence in India will also catalyse demand for our own refined and petrochemical products," Dr Al Jaber said.
The strategic reserve agreement comes on the heels of an announcement in February that an Indian consortium made up of ONGC Videsh, Indian Oil Co and Bharat Petro Resources was awarded a 10 per cent interest in Abu Dhabi’s new offshore Lower Zakum concession.
“The UAE is the first country to invest in India’s Strategic Reserves Programme,” Mr Pradhan said. “The important partnership will further strengthen the close energy cooperation that exists between India and the UAE and builds on the historic acquisition of a stake in the Lower Zakum offshore concession by Indian companies. The strategic reserve will provide a boost to India’s energy security and help us deal with supply side disruptions.”