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Tuesday, March 19

Abu Dhabi oil giant hires strategic oil storage at Padur

Abu Dhabi oil giant hires strategic oil storage at Padur


Mangalore Today News Network

Mangaluru, Nov 13, 2018: India on Nov 12,  Monday signed an initial pact to lease out a part of its underground strategic oil storage at Padur, Abu Dhabi National Oil Co (ADNOC) for storing crude oil, the second such deal with the UAE firm this year, Oil Minister Dharmendra Pradhan said.

India has built 5.33-million tonne of emergency storage - enough to meet its oil needs for 9.5 days, in underground rock caverns in Mangaluru and Padur in Karnataka and Visakhapatnam in Andhra Pradesh. It has allowed foreign oil companies to store oil in the storages on condition that the stockpile can be used by New Delhi in case of an emergency.

ADNOC had in February this year signed a pact to fill half of the 1.5 MT strategic oil storage at Mangaluru. On Monday it signed a similar pact for Padur.

“ISPRL (Strategic Petroleum Reserve entity of India) and ADNOC of UAE signed MoU to explore possibilities of ADNOC investment in filling up of crude oil in Padur strategic reserve in Karnataka,” Pradhan, who is in Abu Dhabi for the agreement
signing, tweeted.

The agreement allows ADNOC to sell or trade crude oil storage in the storages to local refiners but give the Indian government the first right to the oil in case of an emergency. Official sources said the pact followed the Cabinet’s last week decision of approving filling up of the underground oil storage at Padur.


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