India and UAE Enhance Energy Cooperation: New Storage and Production Agreements Signed

India’s Indian Strategic Petroleum Reserve Limited (ISPRL) facilities are being used by the United Arab Emirates (UAE) to store more crude oil.

With India, ADNOC is debating new storage alternatives for its approximately 5.86 million barrels now stored in Mangalore.

This collaboration might be expanded thanks to the agreement that was signed by Crown Prince Sheikh Khalid bin Mohammed bin Zayed Al Nahyan of Abu Dhabi during his visit to India.

Renewing the current management agreement is one of the topics of discussion; the conditions will be negotiated between the parties.

Re-exporting oil from Indian storage caverns has been authorized for ADNOC, putting India into compliance with other Asian nations like South Korea and Japan that provide similar rights to foreign oil companies.

However, to date, ADNOC has not exercised this option.

India’s strategy to triple India’s strategic storage capacity over the next ten years underlines its intention to strengthen its energy security in response to geopolitical uncertainties and price fluctuations.

Expansion Plan and Public-Private Partnership
India’s plan to strengthen its strategic reserves includes a substantial expansion of its storage facilities.

The first phase consists of three sites namely Visakhapatnam, Mangalore and Badur with a total capacity of 5.33 million tonnes.

The second phase, currently under preparation, will add 6.5 million tonnes at Chandikol and Badur under a public-private partnership model.

Known as DBFOT (Design, Build, Fund, Operate, Transfer), this model is part of an approach designed to mobilize public and private resources.

The Indian government’s approach is aimed not only at diversifying sources of energy supply but also at attracting foreign investment in critical infrastructure.

This policy is aligned with the long-term objectives of protecting commodities in an uncertain global environment.

Production concession agreement with Urja Bharat
At the same time, India and the UAE signed a production concession agreement for Abu Dhabi’s onshore Block 1.

The agreement between Urja Bharat, a joint venture between Indian Oil Corporation and Bharat Petro Resources Limited and ADNOC, is a major step for an Indian company in the UAE hydrocarbon sector.

The concession enables India to import crude oil directly from UAE fields, thereby strengthening its energy security.

Both parties express their willingness to diversify their partnership, with opportunities for cooperation in sectors such as critical minerals and advanced technologies.

It represents a strategy to explore new dimensions of cooperation beyond traditional oil and gas contracts.

Prospects for future growth
Crude oil inventory expansion and new production contracts demonstrate a shared desire to consolidate strategic energy partnerships.

India is pursuing a policy of energy diversification that expands beyond its traditional borders, aiming to secure its energy needs through targeted international partnerships.
Current contracts with global companies such as ADNOC reflect this dynamic.

Given the growing importance of energy security in a tense geopolitical environment, these initiatives could set new standards for energy cooperation between oil-producing and oil-consuming countries.