United Arab Emirates make Indian oil history – News
Departure of the historic first cargo of crude oil from Adnoc for the Mangalore strategic reserve
The Abu Dhabi National Oil Company (Adnoc) on Saturday began supplying crude to India for its strategic oil reserves, with the first shipment carrying 2 million barrels of oil.
Indian Strategic Petroleum Reserves Ltd (ISPRL) has been mandated by New Delhi to locate 5.86 million barrels of Adnoc crude at its Karnataka plant in Mangalore.
Dr Sultan Ahmed Al Jaber, Minister of State of the United Arab Emirates and CEO of the Adnoc Group, and Dharmendra Pradhan, Indian Minister of Oil and Natural Gas, attended the historic ceremony of the first shipment of crude to Abu Dhabi. The Indian Ambassador to the United Arab Emirates, Navdeep Singh Suri, was also present.
“With this partnership, new market opportunities will open up for Adnoc, as we are not only helping to ensure the energy security of the UAE’s largest trading partner, but also to have better access to one of the markets in the United Arab Emirates. fastest growing for high quality crude oil. Our increased presence in India will also catalyze demand for our own refined and petrochemical products, “said Dr Al Jaber.
Pradhan said some of the stored oil will be used for commercial purposes by Adnoc, but most of it will be for purely 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 secured a stake of 10 % in the new Lower Zakum offshore concession in Abu Dhabi.
In another major development, PTI reported, citing official sources, that Adnoc will also buy a stake in the planned $ 44 billion refinery-petrochemical project in the Indian state of Maharashtra. An agreement is expected to be signed on Sunday.
According to the International Energy Agency, India’s energy demand is expected to grow more than any other country by 2040. India’s energy consumption is expected to more than double by 2040, accounting for 25% of the increase in energy world, and the highest absolute growth in oil consumption. India is 82 percent dependent on imports to meet its crude oil needs, 8 percent of which is supplied by the United Arab Emirates.
Pradhan tweeted after a meeting with officials at Adnoc that the two sides agreed to form a working group that will meet soon to finalize a list of projects in the upstream, midstream and downstream sectors where mutual investments can be made. considered.
“India views UAE as a privileged partner to further develop the country’s oil and gas infrastructure. Ease of doing business, opening up India’s E&P sector due to political reforms and a stable government make India a profitable investment destination in the energy sector, ”Pradhan added.