Udupi: India, Abu Dhabi, enter into agreement on Padur strategic oil reserve

Udupi, 13 Nov 2018 [Fik/News Sources]: Union petroleum minister, Dharmndra Pradhan, revealed at Abu Dhabi on Monday November 12 that India and Abu Dhabi National Oil Company have signed an agreement for supplying oil to the cavernous underground strategic oil reserve facility created by India at Padur near here.

Pradhan stated that already an agreement between India and Saudi Arabia has been reached for similar purpose. India has entered into understanding with two nations after a cabinet meeting approved the proposal for public-private partnership supplying oil to the strategic oil reserve facility recently.

During February this year, Abu Dhabi National Oil Company had entered into an agreement to supply crude oil for the underground facility near Mangaluru. Similar agreement has now been arrived at relating to Padur. The agreement allows the company at Abu Dhabi to sell crude oil in the reserve to local refineries. In emergency cases however, it will be required to sell oil to the central government on first priority basis.