India is initially contracting a lease of Padur Storage in ADNOC

India, the third largest oil supplier in the world, scouts for reconciliation, reducing reserves and reduction in costs. Photo: Bloomberg

New Delhi / Dubai: Abu Dhabi National Oil Company (ADNOC) has signed a preliminary agreement to use the Padur Strategy Reserve Plan in Kerala, which can be 2.5 million tonnes or 18 million barrels of crude oil.

Indian Strategic Petroleum Resources Limited (ADSP) and Adnok came under the purview of Indian Oil Minister Dharmendra Pradhan and Advocate Chief Executive Sultan Al Jaber.

India, the third largest oil supplier in the world, scouts for reconciliation, reducing reserves and reduction in costs.

"We are confident that we will be able to make the contract on this framework a new mutually beneficial partnership for ADNOC to improve delivery of high quality crude oil for high quality crude oil and enhance India's energy demand," Adnoc CEO said.

The announcement has already been confirmed Reuters Report.

India depends on 80 per cent of the oil marketing companies. The underground ecosystem has been built in three places. This reserves are 36.87 million barrels or an average of 9.5 days.

ADNOC, the only foreign company to procure oil in India's defense reserves, has already carried out similar transactions in the Mangalapuram tunnel, Karnataka.

The deal reflects the strong bonds of collaboration between India and the UAE. We will create a basis for strengthening and expanding our strategic energy ties, "Pradhan said in a statement.

This agreement will allow ADNOC to be sold to local products but India will be given the first right of reserved oil in the immediate aftermath.

Pradhan had earlier said earlier that he would hold discussions with Saudi Arabia in order to collect oil in Padaru. Last week a cabinet sanction was approved by the Foreign Direct Investment (FDI).

"The share of foreign oil firms will significantly reduce the budgetary support of the Government of India as over Rs.100 crores (around $ 1.38 billion) based on current prices," Law Minister RS ​​Sureshwaran said. Prasad said in a press conference last week.

40 km (25 mi) from the Petroleum commodity refinery and 5 km from the south west coast of Mangalore refinery.