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India allows Adnoc to export from its strategic petroleum reserve

Adnoc India_IFM_Image
The oil giant can now export from the Mangalore SPR in foreign flagged ships

The Indian government has granted permission to the UAE-based Abu Dhabi National Oil Company (Adnoc) to start exporting from its strategic petroleum reserve (SPR), media reports said.

Now, Adnoc can export oil stored in the Mangalore SPR in foreign-flagged ships. Earlier,  Indian flagged ships were used for moving oil shipments.

Adnoc has been seeking permission from the Indian government for quite some time as the oil giant is finding it difficult to sell in India due to depleting demands because of the pandemic.

It is reported that the Indian Strategic Petroleum Reserve Ltd has leased half of the 1.5 million tonnes capacity in Mangalore storage to Adnoc.

Earlier this week, it was reported that Abu Dhabi’s pension fund and holding company ADQ are planning to invest around $2.1 billion in Adnoc’s pipeline subsidiary.

This deal will enable local public sector funds to earn income from investments in local infrastructure assets alongside international investment funds such as Global Infrastructure Partners, Brookfield Asset Management and Singapore’s sovereign wealth fund, GIC.

Last month, Adnoc awarded contracts worth $245 million to upgrade two main oil lines and terminal crude receiving facilities in Abu Dhabi.

The contracts were awarded by Adnoc to China Petroleum Pipeline Engineering Company Limited – Abu Dhabi and Abu Dhabi-based Target Engineering Construction.

Yaser Saeed Almazrouei, Executive Director of Adnoc’s Upstream Directorate told the media, “The EPC contracts awarded by Adnoc Onshore will increase the capacity of the two main oil lines and upgrade the Jebel Dhanna terminal to enable it to receive Upper Zakum and Non-System crude for delivery to the Ruwais Refinery West project. The awards follow a very competitive tender process and highlight how Adnoc is making smart investments to optimize performance and unlock greater value from our assets.”

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