Abu Dhabi, Nov 12 (IEBusiness) ADNOC signed a memorandum of understanding with Indian Strategic Petroleum Reserves Ltd for the Padur storage facility in southern India which has a capacity of 2.5 million mt (around 17 million barrels), India’s petroleum ministry said.
The signing was done at the ADIPEC conference in Abu Dhabi, with India’s oil minister, Dharmendra Pradhan, at the event.
Pradhan also said India was in talks with Saudi Aramco to store oil at the Padur storage facility.
The move is phase I of India’s SPR program, which includes a total capacity of 5.33 million mt (or million barrels) at three locations — Mangalore, Padur and Vishakhapatnam.
Under the agreement, ADNOC can sell oil to Indian refiners but the government will have the first right to the oil during an oil shortage.
The Padur site is close to the 300,000 b/d Mangalore Refinery and Petrochemicals Ltd (MRPL) refinery.