A week after the Cabinet approved filling the underground strategic oil reserve at Padur in Karnataka by foreign oil companies, Abu Dhabi National Oil Co (ADNOC) on Monday signed an initial agreement with Indian Strategic Petroleum Reserves (ISPRL), the second such deal by the UAE firm this year.
In the first phase, India has built a strategic reserve capacity of 5.3 million tonne (MT) across three locations — Vishakhapatnam (1.33 MT), Mangaluru (1.5 MT) and Padur (2.5 MT) — at a cost of Rs 4,098 crore. In the second phase, ISRPL is looking to develop two more caverns—a second one at Padur and another at Chandikhol—with a combined storage capacity of 6.5 MT at a cost off Rs 11,000 crore.
Created in June, 2004, ISPRL is a special purpose vehicle wholly owned by the Oil Industry Development Board under the ministry of petroleum and natural gas and has been assigned to develop and maintain underground caverns to store crude oil to mitigate shortages during supply disruptions.
Once filled completely, these reserves can last for 21 days for India in case of exigencies. This will be in addition to the stock of 65 days maintained by oil marketing companies across storage facilities. Read More