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Indian Strategic Petroleum Reserve Limited
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Indian Strategic Petroleum Reserve Limited

  

Government of India in the interest of meeting the objective of country’s energy security, decided on 7th January 2004 to construct Strategic Petroleum Reserves (SPRs) facilities as well as a Special purpose vehicle (SPV) to build and operate the strategic crude reserves. In the year 2006, ownership of Indian Strategic Petroleum Reserve Limited (ISPRL) was transferred to OIDB as per decision of CCEA in its meeting held on 6th Jan 2006 and it was decided to construct the SPR’s through funds available with OIDB.

Today, ISPRL is a wholly owned subsidiary (WOS) of Oil Industry Development Board (OIDB), which is a Body Corporate.

Under Phase-I of SPR program, ISPRL completed the construction and filling of strategic crude oil in underground rock caverns with 5.33 MMT capacity at three locations namely Visakhapatnam (1.33 MMT) in Andhra Pradesh and Mangalore (1.5 MMT) & Padur (2.5 MMT) in Karnataka which can be used in emergencies particularly from serious disruptions in global crude oil supply chain. These three SPRs can meet approximately 9.5 days of national demand. The SPRs were dedicated to the nation by Hon’ble Prime Minister on 10th February 2019.

Abu Dhabi National oil Company (ADNOC), National Oil Company from UAE, joined the Phase-I of the India’s SPR programme and has stored 5.86 million barrels of ADNOC crude in its Cavern-A of Mangalore SPR.

As part of the efforts of the GoI to commercialize the Phase-I of the SPRs,Union Cabinet on 8th July 2021 approved the commercialization of ISPRL by allowing ISPRL for leasing / renting of 30% of overall oil storage capacity of caverns to Indian or foreign companies with the condition that in case of any exigency, the GOI will have the first right on the entire crude oil stored in the caverns and sale / purchase of crude oil up to 20% quantity of overall oil storage capacity of caverns to Indian companies.

Further, the Union Cabinet also accorded approval for establishing additional 6.5 MMT of Strategic Petroleum Reserves at two locations Chandikhol (4 MMT) in Odisha and at Padur (2.5 MMT) in Karnataka on 8th July 2021 along with two dedicated SPMs for Padur and Chandikhol with associated pipelines, under Public Private Partnership (PPP) model under Phase-II.