The Cabinet today approved a pact on oil storage and management between Indian Strategic Petroleum Reserve (ISPRL) and Abu Dhabi National Oil Company (ADNOC) of UAE.
According to the agreement, ADNOC will fill up 0.81 MMT or 5,860,000 million barrels of crude oil at ISPRL storage facility at Mangalore, Karnataka.
The ex-post facto approval for signing of the definitive agreement was approved by the Cabinet chaired by Prime Minister Narendra Modi, an official statement said.
"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," it said.
The investment by ADNOC is a major investment from the UAE under the High Level Task Force on Investment (HLTFI) and the first investment by the Gulf nation in India in the energy sector.
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