India Receives 1StCargo of ADNOC Crude Oil for Mangalore Strategic Petroleum Reserve (Important)

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India received first cargo of UAE crude oil for filling up one of two Strategic Petroleum Reserve (SPR) caverns built by Indian Strategic Petroleum Reserve Ltd (ISPRL) at Mangalore.

Map of 1StAnd 2NdCrude Oil Location

Indian Strategic Petroleum Reserves (ISPR)

Indian Strategic Petroleum Reserve (ISPR) is emergency fuel store of total 5 MMT (million metric tons) of strategic crude oil which are maintained by Indian Strategic Petroleum Reserves Limited.

GoI under phase I of SPR programme has built crude oil storage facilities w/total capacity of 5.33 million tonnes at 3 locations viz. Vishakhapatnam, Mangalore, & Padur.

  • Vishakhapatnam storage has capacity of 1.33 million tonnes (around 9.77 million barrels) of crude oil.
  • Mangalore has capacity of 1.5 million tonnes (around 11 million barrels)
  • Padur can stock 2.5 million tonnes (18.37 million barrels) .

India is planning to expand more strategic crude oil facilities in 2nd phase at Rajkot in Gujarat & Padur in Udupi dist. of Karnataka

Signing of Agreement between UAE, ISPRL & ADNOC

  • In Feb. 2018, during visit of Indian PM to UAE, ISPRL & ADNOC signed Agreement under which ADNOC (Abu Dhabi National Oil Company) .
  • It will store abt 5.86 million barrels of crude oil in India՚s SPR facility at Mangalore at its own cost.
LocationsMillion Metric TonneProposed Storage Sites For Strategic Petroleum Reserves2. Metric TonnePodurRajkotChandikholBikaner01234 BikanerMillion Metric Tonne: 3.8
Chart Representing the Data

Importance of Agreement

  • Entire Vishakhapatnam facility & one of two caverns at Mangalore facility are filled w/crude oil under govt. funding.
  • 2nd cavern at Mangalore facility is now being filled by ADNOC of UAE at its own cost under Agreement w/ISPRL.
  • Agreement stipulates that during emergency oil shortage situation, Indian govt. can use entire available crude oil stored by ADNOC in Mangalore SPR facility for its use.
  • Further, as incentive for storing crude oil at its own cost, Agreement allows ADNOC to sell part of crude oil to Indian refineries during normal times.

India - UAE Hydrocarbon Relations

  • Historic 1st cargo from UAE for filling up India՚s SPR facility demonstrates commitment of both India & UAE in executing strategically imp. agreements in time-bound manner.
  • As UAE is 6th largest crude oil source for India & supplies around 6 % of the petroleum requirement, recent initiative will further strengthen strategic relationship b/w 2 countries.
  • It is culmination of vision to elevate bilateral relationship to comprehensive strategic partnership & transform buyer-seller relations to 2-way investment relationship.

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