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Abu Dhabi National Oil Company (Adnoc) on Saturday started supplying crude to India for its strategic petroleum reserves with the first shipment carrying 2 million barrels of oil.
Historic first crude oil cargo from Adnoc departs for Mangalore strategic reserve
Indian Strategic Petroleum Reserves Ltd (ISPRL) has been mandated by New Delhi to locate 5.86 million barrels of Adnoc crude at its Karnataka facility in Mangalore.
Dr Sultan Ahmed Al Jaber, UAE Minister of State and Adnoc Group CEO, and Dharmendra Pradhan, India’s Minister for Petroleum and Natural Gas, attended the historic first crude shipment ceremony in Abu Dhabi. Indian Ambassador to the UAE Navdeep Singh Suri was also present.
“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 greater 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.
Pradhan said that a part of the stored oil will be used for commercial purposes by Adnoc, but the major part will be purely for strategic purposes. The implementation of the strategic reserve agreement follows Adnoc’s announcement, in February, that an Indian consortium of three companies – ONGC Videsh, Indian Oil Company and Bharat Petro Resources – had been awarded a 10 per cent interest in Abu Dhabi’s new offshore Lower Zakum concession.
In another major development, PTI reported, quoting official sources, that Adnoc will also buy a stake in the planned $44 billion refinery-cum-petrochemical project in the Indian state of Maharashtra. A deal is expected to be signed on Sunday.
According to the International Energy Agency, Indian energy demand is forecast to grow by more than any other country in the period to 2040. Indian energy consumption is expected to more than double by 2040, accounting for 25 percent of the rise in global energy, and the largest absolute growth in oil consumption. India is 82 per cent dependent on imports to meet its crude oil needs, 8 per cent of which is supplied by the UAE.
Pradhan tweeted after a meeting with Adnoc officials that the two parties have agreed to form a working group that will meet soon to finalise a list of projects in upstream, midstream and downstream sector where mutual investment can be considered.
“India looks towards the UAE as a preferred partner in further developing oil and gas infrastructure in the country. Ease of doing business, opening up of the Indian E&P sector due to policy reforms and a stable government makes India a profitable investment destination in the energy sector,” Pradhan added.
Source : Khaleej Times