India-UAE deal for strategic oil reserves

  • India has signed a deal with UAE as part of its quest for energy security and strategic reserve system.
  • UAE is currently 5th biggest supplier of oil to India
  • The deal allows UAE’s Abu Dhabi National Oil Co. (ADNOC) to fill half (about 6 million barrels of oil) of an underground crude oil storage facility at Mangaluru, Karnataka.
  • India has already filled the other half of the Mangaluru storage in Karnataka state with six million barrels of Iranian oil.
  • It also has filled a Vizag storage site in southern Andhra Pradesh with 7.55 million barrels of Iraqi oil and has invited bids from suppliers to fill an 18.3 million-barrel facility at Padur in Karnataka.
Things to ponder:
  • Why all strategic reserves being built in South India?
  • Coastal Areas; Easy to import and refill;
  • Seismically stable
  • Far from Pakistan and China

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