Energy security in focus with new deals
Emergency oil storage is top concern for India
NEW DELHI // The UAE and India yesterday signed agreements that included a deal on oil storage and management between Indian Strategic Petroleum Reserves and the Abu Dhabi National Oil Company (Adnoc).
“This agreement aims to establish a framework for the storage of crude oil by Abu Dhabi National Oil Company in India and to further strengthen the strategic relationship between the countries in the field of energy,” the Indian government said.
The deal came after talks between Sheikh Mohammed bin Zayed, Crown Prince of Abu Dhabi and Deputy Supreme Commander of the Armed Forces, and India’s prime minister, Narendra Modi.
Financial terms of the deal were not disclosed and it was not immediately clear when Adnoc would start storing the oil in India.
The UAE is the fifth-largest supplier of crude oil to India.
India, hedging against energy security risks because it imports most of its oil, is building emergency storage in underground caverns to hold 36.87 million barrels of crude, or about 10 days’ worth of its average daily oil demand last year.
“Our energy partnership is an important bridge in our linkages,” Mr Modi said. “It contributes to our energy security.
“We also exchanged views on developments in West Asia and the Gulf, where both countries have a shared interest in peace and stability. We also discussed developments in our region, including Afghanistan. “Our shared concern on the growing threat from radicalism and terrorism to the safety and security of our people is shaping our cooperation in this space.” An agreement on a comprehensive strategic partnership between India and the UAE was also signed yesterday.
“This is a general framework agreement that highlights the areas of bilateral cooperation identified under the comprehensive strategic partnership as agreed upon in the high level joint statements issued in August 2015 and February 2016,” the Indian government said.
Other agreements included cooperation in the areas of defence manufacturing and technology, maritime transport, freight logistics, warehousing, prevention and combating of human trafficking, small and medium enterprises, agriculture, cyberspace and the adoption of trade measures in areas of mutual interest. “Our discussions were wide ranging, covering the entire spectrum of our bilateral engagement,” Mr Modi said.
“The UAE is one of our most valued partners and a close friend in an important region of the world.
“We particularly focused on the implementation of various decisions taken during our last two meetings. We agreed to sustain the momentum of our relations
‘ Our energy partnership is an important bridge in our linkages Narendra Modi India’s prime minister
in key areas, including energy and investments. “We regard the UAE as an important partner in India’s growth story. I particularly welcome the UAE’s interest in investing in India’s infrastructure sector.
“We are working to connect the institutional investors in the UAE with our national investment and infrastructure fund.
“I also shared with His Highness the interest of Indian companies to be a partner in infrastructure projects for the World Expo 2020 in Dubai. The UAE can benefit by linking with our growth in manufacturing and services.”
Mr Modi also said India and the UAE could tap abundant opportunities aimed at building the digital economy, human capital and smart urbanisation in India.