Kuwait Petroleum Corporation (KPC) has expressed interest in participating in the second phase of India's Strategic Petroleum Reserve (SPR) project, which aims to bolster the country's energy security.
This development follows the MEA's briefing to the Parliamentary Committee on External Affairs, where the details of Phase II were discussed with KPC in November 2022.
The ministry said in a response tabled in parliament: "Participation of Kuwait Petroleum Company in Phase II of the SPR programme of India is one of the new areas of cooperation being explored".
The interest from KPC aligns with India's plans to expand its strategic crude oil storage under phase two.
This expansion includes the construction of caverns with capacities of four million tonnes (mt) in Chandikhol, Odisha, and 2.5mt in Padur, Karnataka.
The project will be executed under a public-private partnership model, as sanctioned by the Union Cabinet in 2021.
The MEA has indicated that ISPRL, the custodian of India's strategic reserves, is actively engaging with nations from the Gulf Cooperation Council (GCC) for investments in the project's second phase.
India's dependency on energy imports from GCC countries is significant, with these nations accounting for 35% of crude oil and 70% of gas imports.
Notably, Saudi Aramco and Abu Dhabi National Oil Company (ADNOC) have been apprised of the opportunity to participate.
ISPRL manages the existing facilities, which have a combined capacity of 5.33mt across three locations: Visakhapatnam (1.33mt), Mangalore (1.5mt) and Padur (2.5mt).
These reserves act as a safeguard against supply disruptions or emergencies.
ADNOC has already stored 5.86 million barrels in Mangalore and, in 2018, signed a memorandum of understanding (MOU) with ISPRL to consider additional storage at the Padur site.
In a move to extend India's strategic oil reserves internationally, ISPRL signed an MOU with Oman Tanking Terminal Company in June 2023 to explore participation in Oman's Ras Markaz project.
The MEA also reassured the committee that India is pursuing long-term oil and gas supply contracts with key Gulf nations.
India currently has agreements with Saudi Arabia, the United Arab Emirates, Qatar, Kuwait and Bahrain and is in the process of finalising a term contract with Oman, its 12th-largest oil supplier.
The MEA said: "India is actively exploring the possibility of entering into a term contract with Oman for the sourcing of crude oil."
