He further highlighted the attractive investment opportunities in the Petroleum and Natural Gas and Skill Development sectors in India and also extended an invitation to the business community in the UAE for greater collaborations and increased investments in India.
According to a 12 May Indian government statement the loading of the first crude consignment was witnessed by petroleum minister Dharmendra Pradhan who is now on a visit to the gulf nation. Under the agreement, ADNOC will store about 5.86 million barrels of crude oil in the cavern in Mangaluru at its own cost.
An amended and restated oil storage and management agreement was signed between ISPRL and ADNOC during the visit of Prime Minister Narendra Modi to the UAE.
During the last round of sanctions, India enjoyed waivers allowing limited Iranian oil imports paid for in rupees instead of USA dollars. The Conversion Park, occupying another 3.6 square kilometers, will also act as a catalyst for the creation of focused industry clusters, that cannot only supply products and solutions using the derivatives and other facilities available, but will also leverage the proximity of such an interconnected ecosystem to drive expertise, innovation and entrepreneurship.
India's strategic crude oil storages are located at Vizag (1.33 million tonnes), Mangalore (1.5 million tonnes) and Padur (2.5 million tonnes). "We are watching very carefully", he said.Pradhan said he was "a little bit concerned" about the impact of the current rise in oil prices on consuming countries but that he did not think oil supply would be an issue.
The plans were unveiled at the ADNOC Downstream Investment Forum, which took place today in Abu Dhabi, UAE.
ADNOC wants to expand its downstream portfolio in markets where demand for oil is still growing, such as China and India, securing a new outlet for its crude.More news: Google to roll out with new feature 'Take a Break' for YouTubers
The United Arab Emirates is making a push to be a major player in the downstream oil market, says Sultan Ahmed Al Jaber, CEO of the Abu Dhabi National Oil Co.
With India's energy demand expected to grow at 4.2% over the next 25 years, energy majors are scouting for opportunities here.
The planned $44 billion facility in western India will be one of the largest refining and petrochemical complexes in the world at 1.2 million barrels per day. India will have the first rights to the stored crude in case of an emergency. The new refinery will significantly increase the capability, flexibility and output of Abu Dhabi's refining operations by adding to the range of crudes that can be processed and that in turn enables the export of increased volumes of the UAE's high-value Murban crude.
Pradhan is visiting UAE to follow up on the February 2018 UAE visit of Prime Minister Narendra Modi.
This will be the first such investment by any foreign company in the Indian SPR facility.
"We see growth coming mainly from the East, and this is the market we're going to be very much focused on", he said.