India intends to import 5.5 million barrels of crude oil to fill its Mangalore strategic petroleum reserve in Karnataka after October.
Additionally, the country may alter the crude grade at another facility, according to a source familiar with the plan, reports Reuters.
Oil imports are necessary as one of the Mangalore reserve tanks is presently devoid of oil.
India, ranked third globally in oil imports and consumption, established strategic storage in Mangalore, Padur, and Vizag located in Southern India.
These locations hold up to 5 million tonnes of crude, or 37 million barrels, to use in the event of a supply disruption.
ISPRL, a government-owned company managing strategic petroleum reserves, has sold from caverns to local refiners after new government rules were implemented in 2021.
Mangalore SPR site has two 5.5 million barrel compartments. One, which previously held Saudi oil, is now empty, according to the report, and the source stated that the compartment will be filled in October after the SPM facility at the Mangalore port reopens.
During monsoon seasons, SPM (Single Point Mooring) used by large crude carriers for oil discharge is closed.
Mangalore SPR leased second compartment to Abu Dhabi National Oil Co. from UAE.
India has set aside 50 billion rupees for strategic oil purchases this fiscal year until 31 March 2024. An additional SPR will be empty later this year, requiring India to import approximately 13 million barrels of oil.
India released oil from reserves to stabilise global oil prices in 2021, in coordination with the US programme.
ISPRL’s website states that they will sell a second batch of 300,000 tonnes of Iraqi Basra crude from Vizag SPR in Andhra Pradesh.
The company intends to sell the remaining oil by late 2023 or early 2024 and consider replenishing it with a different crude grade, as per the report.