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Government permits ADNOC to re-export crude oil from Mangalore reserve

Utkarsh Classes Last Updated 27-03-2024
Government permits ADNOC to re-export crude oil from Mangalore reserve Agriculture 4 min read

The government of India has allowed the Abu Dhabi National Oil Company (ADNOC) to re-export crude oil from its underground strategic reserves at Mangalore, Karnataka. Presently, the government of India allows the export of crude petroleum oil only through the government-owned Indian Oil Corporation Limited (IOCL). ADNOC is a United Arab Emirates Company.  

The government of India-owned Indian Strategic Petroleum Reserve Limited has leased half of the 1.5 million tonne capacity in Mangalore storage to ADNOC. Under the lease agreement, ADNOC can sell the oil stored in Mangalore to Indian refinery companies. ADNOC was not finding any Indian buyer for its crude oil, so it asked permission to re-export from India.

Making an exception, the government allowed the AMI (Adnoc Marketing International (India) RSC Limited India) to re-export crude oil from its commercial stockpile at its own cost at the Mangalore strategic petroleum reserve.

Strategic Oil Storage of India 

India imports about 85% of its crude petroleum oil annually. It is also the world’s third-biggest oil importer after China and the United States of America.

India's major source of crude oil is the politically volatile West Asian region. To ensure energy security and serve as a cushion against any supply disruption, the government of India decided to set up 5.33 million metric tons (MMT) of strategic crude oil storage at three locations: Visakhapatnam, Mangalore, and Padur (near Udupi). All these strategic oil reserves are underground rock cavern storage facilities.

The Indian Strategic Petroleum Reserves Limited (ISPRL) is a Special Purpose Vehicle set up by the Oil Industry Development Board (OIDB) under the Union Ministry of Petroleum and Natural Gas. The ISPRL was set up to create and operate India's strategic oil reserves on behalf of the government.

Strategic Crude Oil Storage Facilities.

The ISPRL currently operates three strategic oil reserves,one at  Visakhapatnam, Andhra Pradesh, and two in Karnataka, Mangalore and Padur with a combined capacity of 5.33 million tonnes.

The maximum storage facility at Visakhapatnam is 1.33 million tonnes,1.5 million tonnes at  Mangalore and 2.5 million tonnes at Padur.

The Visakhapatnam facility was commissioned in June 2015, Mangalore (October 2016) and Padur (December 2018). 

These three facilities' storage facilities are considered enough to meet 9 days of national oil demand.

Crude oil from these caverns can be supplied to the Indian Refineries through pipelines or a combination of pipelines and coastal movement.

Apart from the Strategic Crude Oil Storage Facilities, oil reserves are held by the Indian refineries and pipelines.

The government plans to set up new storage facilities at Chandikhol (Odisha) and Padur.


Answer: Abu Dhabi National Oil Company (ADNOC) of the United Arab Emirates.

Answer: Visakhapatnam, Andhra Pradesh, was commissioned in June 2015.

Answer: Indian Strategic Petroleum Reserves Limited, owned by the Union Ministry of Petroleum and Natural Gas.

Answer: Visakhapatnam, Mangalore and Padur.

Answer: Chandikhol (Odisha) and Padur.
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