Store our oil and take 2/3rd for free: UAE’s offer to India

February 11, 2016

New Delhi, Feb 11: In a first of its kind deal, UAE’s national oil company Adnoc has agreed to store crude oil in India’s maiden strategic storage, and give two-third of the oil to it for free.

UAE

India, which is 79% dependent on imports to meet its crude oil needs, is building underground storages at Visakhapatnam in Andhra Pradesh and Mangalore and Padur in Karnataka to store about 5.33 million tonnes of crude oil to guard against global price shocks and supply disruptions.

Abu Dhabi National Oil Company (Adnoc) is keen on taking half of the 1.5 million tonnes Mangalore facility, oil minister Dharmendra Pradhan said on Wednesday.

It will stock 0.75 million tonnes, or 6 million barrels, of oil in one compartment of Mangalore facility. Of this, 0.5 million tonnes will belong to India and it can use it in emergencies. Adnoc will use the facility as a warehouse for trading its oil.

The 1.33 million tonnes Visakhapatnam storage, and 2.5 million tonnes Padur stockpile together with 1.5 million tonnes Mangalore storage will be enough to meet nation’s oil requirement of about 10 days.

After talks with visiting UAE minister for energy Suhail Mohammed Al Mazrouei, Pradhan said tax issue remains to be sorted out before Adnoc can begin storing oil at Mangalore.

Congress-ruled Karnataka government has not yet agreed on waiving VAT on the crude oil imported for the strategic storage, which UAE wants to use to stock oil when prices are low and supply to its customers when rates are good.

“This will be beginning of our strategic ties,” he said, adding that Prime Minister Narendra Modi’s visit to UAE in August last year, the first by an Indian Prime Minister in 38 years, laid the foundation of closer cooperation.

The UAE had then committed to invest $75 billion in India, and Pradhan on Wednesday showcased to Mazrouei opportunities for that investment.

“We have offered them refinery projects, petrochemical plans, pipelines and LNG terminals for investment,” he said.

On offer was 26% stake for $700 million in ONGC’s about-to-be-commissioned petrochemical project at Dahej in Gujarat, and 24% equity for $200 million in expansion being planned by BPCL of its subsidiary Bina refinery in Madhya Pradesh from 6 million tonnes to 7.5 million tonnes.

Also, an investment of $530-850 million can get the UAE 25-40% stake in HPCL’s planned petrocehmical plant on the Andhra coast, he said, adding that the Gulf national can also invest in the planned 60 million tonnes in Maharashtra and the Jagdishpur-Haldia and Paradip-Surat gas pipelines.

“UEA makes up for 8% of our oil imports. We are trying to import more oil from UAE. In 2016-17, we plan to import 2.5 million tonnes more oil than current year’s purchase of 16.11 million tonnes,” he said.

Besides Adnoc, Kuwait Petroleum Corp (KPC) too has evinced interest in hiring a part of the maiden strategic storage.

Comments

shamshuddin mohammed
 - 
Thursday, 11 Feb 2016

Dear mangaloreans Tear your passport now and say Goodbye to Gulf Countries, Now you have become Oil Rich Mangaloreans Hats off........... smile please.....

mohammad.n
 - 
Thursday, 11 Feb 2016

Dubai petrol in India, American nuclear in India. What next? Can we get some safe place to live peacefully ???!!!!

AK
 - 
Thursday, 11 Feb 2016

The Hindus are Fooled to fight the muslims but the leaders are just hugging the muslims to worldly gain.. What a POLITICS ! the hindus are FOOLED by cheddis and they are hugging each other.
Dear sharan pumpwell.. please U may need arab support later when u will exhaust from communal riots.. People will fed up and may throw u out of the country to arab lands.. So avoid creating COMMUNAL riots.

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News Network
March 12,2020

New Delhi, Mar 12: The coronavirus pandemic could deal a crippling blow to the Indian travel and tourism industry, specially with the government suspending all visas, with the economic impact being assessed to run into thousands of crores of rupees. According to industry chamber CII, this is the one of the worst crises ever to hit the Indian tourism industry impacting all its geographical segments - inbound, outbound and domestic, almost all tourism verticals - leisure , adventure, heritage, MICE, cruise, corporate and niche segments.

The whole tourism value chain across hotels, travel agents, tour operations, destinations, restaurants, family entertainment venues and air, land and sea transportation have been hit.

In an impact assessment of the coronavirus pandemic, CII Tourism Committee said inbound foreign tourism of over USD 28 billion in value terms accounts for an average 60-65 per cent between October to March.

"As the news of the virus started picking up from November, the percentage of cancellations started going up in this segment exponentially and is reaching a peak of almost 80 per cent now in March in many Indian locations. The value at risk from this segment will be in multiples of tens of thousands of crores," the CII assessment report said.

With India cancelling all visas, the chamber said the impact "will be worse".

It further said,"The forward bookings for the inbound season of October 2020-March 2021 which should have started picking are all muted. These are showing highly discouraging signs with cancellations of important global travel marts which are marketplaces for contracting for the next season."

It further said there are reports of large scale forward cancellations from NRI segment from developed markets, which account for over 60 per cent during April to September inbound visits.

"Unless the progression of the virus stops, almost the entire value for the remainder of 2020 season is at risk," the report added.

ANAROCK Property Consultants Chairman Anuj Puri said India's hospitality sector will definitely be impacted by the announcement of a global pandemic, and the mounting numbers of confirmed coronavirus cases in the country.

"The cancellation of visas for foreigners as well as the strong advice issued to Indians to refrain from unnecessary travel will have a marked effect. This is the most unsettling healthcare crisis in recent times and hotel bookings will go south," he added.

On Indians being advised to refrain from unnecessary travel, as per the CII report almost 28 million plus Indians are estimated to have travelled outside in 2019 and there were almost 1.8 billion domestic tourist footfalls.

The holiday season of Indians -- those travelling within the country and outside -- is heavy in April-July, October and December.

"The December holiday season of 2019 took an estimated hit of almost 40-50 per cent, the holiday season of April to July 2020 is likely to take a humongous hit which could be as high as 80-100 per cent, unless there is positive news of the progression of virus decreasing," the CII assessment report said.

There are advanced cancellations and highly reduced forward booking pipelines for the holiday season. Only corporates are flying and that too only on highly essential same day travel. Most of the MNCs are advising work from home, stifling travel, it added.

On suspension of visas, MakeMyTrip Group CEO Rajesh Magow told ,"The period between February till the end of March is typically a lean period because of exam season but we are seeing a demand slowdown for the upcoming summer holiday season especially for international travel. The situation remains dynamic making it hard to quantify the actual impact on our business and industry at large."

He further said,"The decision by the government will have an impact on inbound and outbound international travel. So far there are no restrictions or advisories issued for domestic travel."

VFS Global Regional Group COO - South Asia, Middle East and North Africa, Americas Vinay Malhotra said,"While it is too early to comment on the impact of coronavirus on visa application trends, so far, our visa application processes in India continue on schedule as per the mandates of our client governments."

He also said the company is exploring steps to assuage concerns of people about visiting busy public areas due to the nature of the virus by considering discounted rates on courier return services for visa customers who want to avoid returning to the visa centres to pick up their passports.

Besides, he said,"We are also contemplating lower fees for our Visa at your doorstep service, for those customers who are requesting an alternative to visiting the centres to submit visa applications."

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News Network
May 28,2020

New Delhi, May 28: BJP national spokesperson Sambit Patra has been admitted to a private hospital in Gurgaon after he showed symptoms of COVID-19, sources said.

He is admitted to the Medanta hospital in Gurgaon, hospital sources said on Thursday.

The BJP leader has shown symptoms of COVID-19, a source said.

Patra is one of the most visible BJP faces on news channels.

He is also very active on social media and posted several tweets on Thursday as well.

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News Network
July 12,2020

New Delhi, Jul 12: With the highest single-day spike of 28,637 new cases and 551 deaths being reported in the last 24 hours, India's COVID-19 count reached 8,49,553 on Sunday.

According to the Union Health and Family Welfare Ministry, this includes 2,92,258 active cases, and 5,34,621 cured and discharged or migrated patients. The toll due to the disease has reached 22,674 in the country.

Maharashtra with 2,46,600 cases continues to be the worst affected state by COVID-19 in the country. The state has 99,499 active cases while 1,36,985 patients have been cured and discharged so far. The death toll due to the disease now stands at 10,116.

Tamil Nadu with 1,34,226 cases, including 46,413 active ones, is the next worst affected in the country. While the number of cured and discharged patients is at 85,915 in the state, the toll due to the disease is at 1,898.

The national capital has recorded 1,10,921 confirmed cases so far. However, the number of active cases in Delhi is at 19,895 and 87,692 patients have been cured and discharged so far. With 3,334 deaths being reported due to COVID-19 in the city. 

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