Indian Strategic Petroleum Reserves, Aramco ink storage lease pact

Riyadh: India’s energy partnership with the world’s biggest oil producer – that will enable energy security in the long term took a leap forward on Tuesday, with a bilateral deal to build emergency crude reserves as a buffer against volatility in oil prices and supply disruptions. Indian Strategic Petroleum Reserves (ISPRL) signed an agreement with Saudi Aramco to lease part of the 2.5-million tonnes Padur storage in Karnataka.

The deal with the state-run Saudi Aramco was signed during Prime Minister Narendra Modi’s visit. The UAE has also contributed to strategic reserves in India. The Middle East unit of Indian Oil Corp, signed a preliminary deal with Saudi Arabia’s Al Jeri Transport Company for cooperation in the downstream sector, including setting up fuel stations in the kingdom.