Cabinet clears strategic oil storage agreement with Abu Dhabi National Oil Company

The union cabinet on Monday approved the strategic oil storage and management agreement signed between Indian Strategic Petroleum Reserve Ltd (ISPRL) and Abu Dhabi National Oil Company (ADNOC) of the United Arab Emirates (UAE).

The cabinet chaired by Prime Minister Narendra Modi gave ex-post facto approval for the definitive agreement under which ADNOC will fill up 0.81 million metric tonnes (MMT) or 5,860,000 million barrels of crude oil at ISPRL storage facility at Mangalore, Karnataka.

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.

India and UAE are strategic partners. The investment by ADNOC is a major investment from UAE under the High-Level Task Force on Investment (HLTFI) and the first investment by UAE in India in the energy sector.

The cabinet also gave ex-post facto approval to the memorandum of understanding (MoU) between the National Productivity Council, an autonomous body under the Department of Industrial Policy and Promotion under India's ministry of commerce and industry, and Al Etihad Energy Services UAE, to provide various services in the field of energy management and conservation.

Under the MoU, the NPC will provide services such as energy assessment services, training and certification of energy auditors and demand side management.

Al Etihad ES, on its part, will provide services to all the relevant projects on a case by case basis, which include customer support with UAE government and private owned organizations in the United Arab Emirates; all local support for field auditing professionals in the UAE; all local support for training and certification of energy auditors in the UAE and all support related to demand side management of industries based in the UAE.

The MoU will enable NPC avail of high value opportunities such as energy building and develop institutional mechanism in area of energy efficiency in Dubai and other Gulf Cooperation Council, (GCC) member countries.

It will provide recognition and exposure to further build NPC's capacities and competencies in rapidly changing international business scenario. MoU will be a precedent for engagements with other International collaboration partners and will enhance NPC's visibility in arena.

The MoU will help promote NPC in GCC member countries and will generate business for NPC in the area of energy.