PM Narendra Modi-led Union Cabinet has cleared numerous pacts including a Definitive Agreement on Oil Storage and Management between ISPRL and ADNOC of UAE. After PM Modi ended his assembly election campaign in Varanasi, there was a flurry of activities found where the cabinet cleared many other pacts too including a Rs 4,500 crore project in order to revive 50 unserved and underserved airports, airstrips and a MoU between India and Portugal on cooperation in the field of IT & E, MoU on Renewable Energy. This came after PM Modi spent 3 days and addressed a number of rallies ahead of the assembly elections. The Cabinet has now approved the signing of Definitive Agreement on Oil Storage and Management between ISPRL, and ADNOC of UAE.
This move by the government seems to be aimed towards boosting India’s energy security. For this, the union cabinet gave post facto approval for signing of an agreement. This will ensure a strategic storage flow in for crude oil, from a government firm in Abu Dhabi for meeting unexpected future exigencies. The crude oil which will be stored, a majority of it will be used purely for strategic purposes, while some of it will be utilised for the commercial purpose. Here is everything you need to know about the PM Modi government’s strategic oil reserve move.
Govt approves oil storage pact with ADNOC. Here are 5 things you should know about the pact:
1. The Cabinet, on March 6, approved a pact on oil storage and management between Indian Strategic Petroleum Reserve (ISPRL) and Abu Dhabi National Oil Company (ADNOC) of UAE.
2. The agreement dictates that ADNOC will fill up 0.81 MMT or 5,860,000 million barrels of crude oil at ISPRL storage facility at Mangalore, Karnataka.
3. According to an official statement, the ex-post facto approval for signing of the definitive agreement was approved by the Cabinet chaired by Prime Minister Narendra Modi.
4. The official statement also said: “Out of the crude stored, some part will be used for the 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.”