New Delhi: The Abu Dhabi National Oil Company (ADNOC) will play a larger role in maintaining India's strategic oil reserves, beyond Mangalore in Karnataka, expanding not only to Visakhapatnam in Andhra Pradesh and Chandikhol in Odisha, but also to holding a dedicated storage for the South Asian nation in the United Arab Emirates itself.
With the conflict in West Asia triggering energy security concerns in India, Prime Minister Narendra Modi and President Sheikh Mohammed Bin Zayed Al Nahyan of the United Arab Emirates on Friday witnessed the signing of a Memorandum of Understanding between ADNOC and the Indian Strategic Petroleum Reserves Limited (ISPRL). Besides, the ADNOC also inked an MoU with the Indian Oil Corporation Limited (IOCL) on the supply of Liquefied Petroleum Gas.
The two leaders also witnessed the signing of the framework for a strategic defence partnership, setting the stage for defence industrial collaboration and cooperation in innovation and advanced technology, training, exercises, education, special operations and interoperability, maritime security, cyber defence, secure communications and information exchange.
UAE to expand role in India's strategic oil reserves; LPG deal likely during PM Modi's visitThe UAE also pledged to invest $ 5 billion in India.
"The signing of pivotal agreements in vital sectors, such as energy, defence, infrastructure, shipping, and advanced technologies, will provide a fresh boost to the comprehensive strategic partnership between India and the UAE," Modi posted on X. "The UAE's announcement for $5 billion will work to further deepen economic ties."
Modi's Air India One was escorted by F-16 aircraft of the Emirati Air Force after it entered the UAE airspace while flying from New Delhi to Abu Dhabi.
He was received by the UAE president himself at the airport.
The MoU between ADNOC and ISPRL will clear the way for potential crude oil storage - up to 30 million barrels - by the UAE company in the strategic petroleum reserves of India, including through its participation in facilities in Vishakhapatnam in Andhra Pradesh, and development of reserve facilities in Chandikhol in Odisha. The MoU will also pave the way for potential storage of crude oil by ADNOC in Fujairah, UAE, as part of the strategic petroleum reserve of India. The ADNOC will also explore opportunities for collaboration in Liquid Natural Gas and Liquid Petroleum Gas storage facilities in India.
The UAE has been a partner in building India's strategic petroleum reserves (SPRs), aimed at protecting the country against global supply disruptions and maritime security risks. India currently maintains 5.33 million metric tonnes (MMT) of SPR capacity in underground rock caverns at Visakhapatnam in Andhra Pradesh, and at Mangalore and Padur in Karnataka, providing nearly 9.5 days of crude oil cover. Combined with storage facilities operated by oil marketing companies, the country's total crude oil and petroleum storage capacity stands at around 74 days.
In July 2021, the government approved two additional commercial-cum-strategic SPR facilities with a combined capacity of 6.5 MMT - 4 MMT at Chandikhol in Odisha and 2.5 MMT at Padur in Karnataka - with construction work at Padur awarded in October 2025.
The ADNOC became the first foreign company to store crude in India's SPRs in 2018 under an agreement signed with ISPRL in 2017, permitting the UAE firm to use the 750 TMT-capacity Cavern-A facility at Mangalore.
The ADNOC's MoU with IOCL will expand LPG supply and trading opportunities, including through ADNOC Global Trading, building on the UAE company's existing contract for LPG supply, in place since 2023, and supporting the development of a potential long-term LPG sale and purchase agreement.
The two leaders witnessed the signing of an MoU between Cochin Shipyard Limited (CSL) of India and Drydocks World (DDW) of the UAE for setting up a ship repair cluster at Vadinar in Gujarat. The CSL, along with the Centre of Excellence in Maritime and Shipbuilding (CEMS), and DDW also inked a tripartite MoU, which seeks to enhance the capabilities of the maritime workforce of India and to position India as a hub for skilled shipbuilding and ship repair professionals.
The CDAC of India and G-42 of the UAE agreed on collaboration for the deployment of Condor Galaxy India, an 8-exaflop AI supercomputing cluster comprising 64 Cerebras CS-3 systems.