Under the terms of the deal, ADNOC is allowed to sell oil to local refineries but gives the Indian government the right to draw oil in emergency situations.
The agreement is the second of its kind with ADNOC, which already stores oil at the Mangalore strategic storage facility in southern Karnataka. Three informed sources said India's strategic oil reserves company would sign a preliminary agreement with ADNOC on Monday, in the presence of Oil Minister Dharmendra Pradhan.
"We will sign a memorandum of understanding (MoU) with ADNOC to fill two storage rooms in Bador, similar to what happened at the Mangalore facility” A source with direct knowledge of the issue.
For allowing ADNOC to store its oil at the strategic reserve site, India does not have to pay for imports, and it has the right to draw oil only in case of emergency. India relies heavily on oil imports, which meet about 80% of total demand.
