News Detail

News: 

National oil companies of Saudi Arabia, Iran, Kuwait and UAE have evinced interest in hiring a part of the under-construction strategic oil storages being built on the west coast but first want India to liberalise policy by allowing export of crude oil.

Source: ET

SNP Insight: 

The modelled approach based on leasing identifies the cavern as commercial storage for the oil company but in case of emergency oil will be supplied to refineries in India. On one hand the interim benefits reaped for refineries in India include ensured supplies of crude oil while the Government can earn revenue from the strorage. The overall to success lies with approval of the Government to allow exports and the fixing of the quantum of supplies for Indian refineries.

Source: SNP Infra Research