The United Arab Emirates’ national company Abu Dhabi National Oil Company (ADNOC) has agreed to store its crude oil in India’s maiden strategic storage, and give two-thirds of the commodity to the country for free.
India that is 79 percent dependent on imports of crude oil, is building underground storage facilities in Visakhapatnam’s, Andhra Pradesh, and in Mangalore, and Padur, Karnataka, to store some 5.33 million tonnes of crude oil to guard against global price shocks and supply disruptions. ADNOC is keen on taking half of the 1.5 million tonnes Mangalore facility.
After talks with the visiting UAE Minister for Energy, Suhail Mohammed Al Mazrouei, India’s Oil Minister Dharmendra Pradhan said the tax issue remains to be sorted out before ADNOC can begin storing oil at Mangalore.
PM Modi’s visit to the UAE last August, which was the first by an Indian Prime Minister in 38 years, laid the foundation of closer cooperation. The UAE had then committed to invest $75 billion in India, and the oil storage situation showcased an ideal opportunity for the investment.