India receives first crude cargo for strategic petroleum reserve | Current Affairs, Current Affairs 2018

India receives first crude cargo for strategic petroleum reserve

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India has received the first cargo of crude oil for filling up one of the two Strategic Petroleum Reserve (SPR) caverns built by Indian Strategic Petroleum Reserve Ltd (ISPRL) at Mangalore.

According to an official sources, the Indian government under phase I of SPR programme has built crude oil storage facilities with total capacity of 5.33 million tonnes (around 39 million barrels) at three locations (Vishakhapatnam, Mangalore and Padur). Vishakhapatnam storage has a capacity of 1.33 million tonnes (around 9.77 million barrels) of crude oil, Mangalore has a capacity of 1.5 million tonnes (around 11 million barrels) and Padur can stock 2.5 million tonnes (18.37 million barrels). The entire Vishakhapatnam facility and one of the two caverns at Mangalore facility have been filled with crude oil under government funding, the second cavern at Mangalore facility is now filled by ADNOC of UAE at its own cost under the Agreement with ISPRL.

It should be noted that UAE is the 6th largest crude oil source for India and supplies around 6 per cent of the petroleum requirement. With the recent acquisition of 10% stake in UAE’s Lower Zakhum offshore producing field by Indian public sector oil and gas companies and the investment by ADNOC in Indian SPR facility, the hydrocarbon sector engagements between India and UAE have transformed from buyer-seller relationship to strategic partners in the energy sector.

 

 

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