India and Abu Dhabi enter an agreement for strategic oil reserves

India and Abu Dhabi have entered into an agreement for meeting the former’s requirement of strategic oil reserves. The agreement was entered into between two state-run companies, the Indian Strategic Petroleum Reserves Limited and the Abu Dhabi National Oil Company. Since India imports nearly 80 per cent of its oil requirements, the government had decided to set up oil storage facilities as a cushion against disruptions in external supply and for emergencies. These storages, typically in rock caverns, are in addition to the ones owned by oil companies. The gulf country contributes significantly to domestic energy security, being the sixth largest supplier of crude oil to India.