The Union Cabinet
chaired by the Prime Minister Shri Narendra Modi has given its ex-post
facto approval for signing of the Definitive Agreement on Oil Storage
and Management between Indian Strategic Petroleum Reserve Ltd (ISPRL)
and Abu Dhabi National Oil Company (ADNOC) of UAE.
According to the Agreement, the ADNOC will fill up 0.81 MMT or 5,860,000
million barrels of crude oil at ISPRL storage facility at Mangalore,
Out of the crude stored, some part will be used for commercial purpose
of ADNOC, while a major part will be purely for strategic purposes. The
signing of the Agreement will augment India's energy security.
India and UAE are strategic partners. The investment by ADNOC is a major
investment from UAE under the High Level Task Force on Investment (HLTFI)
and the first investment by UAE in India in the energy sector.