Rs 10,000 crore will be saved with this inventory of oil reserve, thereby reducing budgetary support of Indian government, said Ministry of Petroleum and Natural Gas.

Foreign oil companies to fill Ktakas Padur reserves to reduce support from Indian govt
news Petroleum Friday, November 09, 2018 - 08:57

The Union Cabinet on Thursday approved filling of Padur Strategic Petroleum Reserves (SPR) at Padur, Karnataka, by overseas national oil companies in order to strengthen the oil reserves in the country. “As per our new system, we are also inviting foreign companies under the public-private partnership (PPP) model. Overseas national oil companies will come and through a proper tendering process, which will help establish a strategic oil reserve at Padur,” Union Minister Ravi Shankar Prasad said.

“A total of Rs 10,000 crore will be saved with the construction of this inventory,” he added while briefing media on cabinet decisions. The SPR facility at Padur is an underground rock cavern with a total capacity of 2.5 million metric tonnes (MMT), with four compartments of 0.625 MMT each.

“The filling of the SPR under PPP model is being undertaken to reduce budgetary support of the Government of India,” the Ministry of Petroleum and Natural Gas said in a statement.

The Indian Strategic Petroleum Reserves Ltd (ISPRL) has constructed and commissioned underground rock caverns for storage of total 5.33 MMT of crude oil at three locations namely Vishakhapatnam (1.33 MMT), Mangaluru (1.5 MMT) and Padur (2.5 MMT).

The total 5.33 MMT capacity under Phase-I of the SPR programme is estimated to supply about 95 days of India’s crude requirement according to the consumption data for fiscal 2017-18, the statement said.

Further, the government has given an in-principle approval in June 2018 to establish additional 6.5 MMT SPR facilities at Chandikhol in Odisha and Padur in Karnataka, the Ministry said.

This is likely to augment India’s energy security by 11.5 days, as per the consumption data for the financial year 2017-18, it added.  

The Indian Strategic Petroleum Reserve (ISPR) is an emergency fuel storage of 5.33 MMT, enough to provide for 10 days of consumption. The storages are maintained at three underground locations in Mangaluru, Vishakhapatnam and Padur in Udupi district.

 

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