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India and UAE inks deals for strategic Oil reserves Storage

TNPSC Current Affairs January 27 2017


India’s Quest for Energy security got major push after signing the deal with UAE which allows to fill India’s 1/6th emergency oil reserve storage.

About Strategic Oil Reserve Storage:

The deal is part of New Delhi’s strategic petroleum reserve system, an emergency underground storage to hold 36.87 million barrels of crude oil, which will provide 10 days of its daily oil demand.
The deal to allow the Gulf OPEC country to fill half of the underground crude oil storage facility at Mangalore . 

UAE’s Abu Dhabi National Oil co will store about 6 million barrels at Mangalore
The world’s largest strategic Petroleum reserve is held by United States with capacity of 727 million barrels which will provide 2 months of its Oil demand.

Why Strategic Oil reserve Storage:

The reserve will help to safeguard the economy and to stabilize the petroleum prise in case of Emergency.


India also has the other storage site in Vishakhapatnam with 7.55 million barrels of Iraq oil and Paduran, Karnataka which has 18.3 million barrels storage capacity.


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