Chanakya IAS Academy Blog



India received the 1st cargo of UAE crude oil for filling up one of the two Strategic Petroleum Reserve (SPR) caverns built by Indian Strategic Petroleum Reserve Ltd (ISPRL) at Mangalore.


  • The Indian Strategic Petroleum Reserve (ISPR) is an emergency fuel store of total 5 MMT (million metric tons) of strategic crude oil which are maintained by the Indian Strategic Petroleum Reserves Limited.
  • GoI under phase I of SPR programme has built crude oil storage facilities with total capacity of 5.33 million tonnes at three locations viz. Vishakhapatnam, Mangalore,andPadur.
    • Vishakhapatnam storage has a capacity of 1.33 million tonnes (around 9.77 million barrels) of crude oil.
    • Mangalore has a capacity of 1.5 million tonnes (around 11 million barrels) and Padur can stock 2.5 million tonnes (18.37 million barrels).
  • India is planning to expand more strategic crude oil facilities in the second phase at Rajkot in Gujarat and Padur in Udupi district of Karnataka


In 2018, during the visit of Indian PM to UAE, ISPRL and ADNOC signed an Agreement under which ADNOC (Abu Dhabi National Oil Company) will store about 5.86 million barrels of crude oil in India’s SPR facility at Mangalore at its own cost.


  • The entire Vishakhapatnam facility and one of the two caverns at Mangalore facility have been filled with crude oil under government funding.
  • The second cavern at Mangalore facility is now being filled by ADNOC of UAE at its own cost under the Agreement with ISPRL.
  • The Agreement stipulates that during an emergency oil shortage situation, the Indian government can use the entire available crude oil stored by ADNOC in the Mangalore SPR facility for its use.
  • Further, as an incentive for storing crude oil at its own cost, the Agreement allows ADNOC to sell part of the crude oil to Indian refineries during normal times.


The historic first cargo from UAE for filling up India’s SPR facility demonstrates the commitment of both India and UAE in executing strategically important agreements in a time-bound manner.As UAE is the 6th largest crude oil source for India and supplies around 6% of the petroleum requirement, the recent initiative willfurtherstrengthenthe strategic relationship between the two countries.It is a culmination of the vision to elevate the bilateral relationship to a comprehensive strategic partnership and transform the buyer-seller relations to a two-way investment relationship.

Read 640 times Last modified on Monday, 14 January 2019 16:59

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