As reported in Hindustan Times, The Abu Dhabi National Oil Co. (ADNOC) is looking to expand its presence in India by investing in the refining and petrochemicals sector and strategic petroleum reserves, a top UAE official said. The UAE is looking at expanding investment portfolio in downstream sectors, refining and petrochemicals through strategic partnerships given that they can bring their own crude.
Previously, ADNOC and Saudi Aramco had signed a memorandum of understanding (MOU) for participating in the Ratnagiri Refinery and Petrochemicals Corp. Ltd (RRPCL), which is building a 60 million tons per annum refinery project in Mahaashtra. The mega refinery to be set up with an estimated investment of Rs 3 lakh crore, will be able to process 1.2 million barrels of crude oil per day. The refinery project, which was announced in December 2015, was to be commissioned by 2022 but land acquisition delays have pushed the deadline to 2025.
The UAE is also looking at storing more crude oil in Indian storages. Currently, the UAE supplies a small quantity of oil to India. Last November, India signed an initial pact to lease out a part of its underground strategic oil storage at Padur in Karnataka to ADNOC for storing crude oil. The country has built 5.33 million tonne (MT) of emergency storage, sufficient to meet its oil needs for 9.5 days, in underground rock caverns in Mangaluru and Padur in Karnataka and Visakhapatnam in Andhra Pradesh. It has allowed foreign oil companies to store oil in these places on the condition that the stockpile can be used by New Delhi in case of an emergency.