KUWAIT CITY, Dec 7: The Kuwait Petroleum Corporation (KPC) has shown interest in collaborating on the second phase of India’s Strategic Petroleum Reserve (SPR) project, which seeks to enhance the nation’s energy security.

This development stems from discussions held in November 2022, during a briefing by the Indian Ministry of External Affairs (MEA) to the Parliamentary Committee on External Affairs. The MEA confirmed in a parliamentary response that KPC’s participation is among the new avenues of cooperation being explored under the SPR Phase II.

India’s SPR expansion involves constructing additional storage caverns, including a 4-million-tonne (mt) facility in Chandikhol, Odisha, and a 2.5mt facility in Padur, Karnataka. The project, approved in 2021, will be executed through a public-private partnership model.

The Indian Strategic Petroleum Reserves Limited (ISPRL), which oversees the country’s existing reserves, is actively engaging with Gulf Cooperation Council (GCC) nations to secure investments for the project. GCC countries play a pivotal role in India’s energy imports, accounting for 35% of crude oil and 70% of natural gas supplies.

Notably, Saudi Aramco and the Abu Dhabi National Oil Company (ADNOC) have been briefed about opportunities in SPR Phase II. ADNOC has already stored 5.86 million barrels of oil in India’s Mangalore reserve and signed an agreement in 2018 to explore additional storage options at the Padur site.

India’s current strategic reserves, managed by ISPRL, have a combined capacity of 5.33mt, distributed across Visakhapatnam (1.33mt), Mangalore (1.5mt), and Padur (2.5mt). These reserves serve as a safeguard against energy supply disruptions.

ISPRL is also extending India’s strategic oil reserve network internationally. In June 2023, it signed a memorandum of understanding (MoU) with the Oman Tanking Terminal Company to explore collaboration in the Ras Markaz project in Oman.

The MEA assured the Parliamentary Committee that India is pursuing long-term oil and gas supply agreements with major Gulf nations, including Saudi Arabia, the UAE, Qatar, Kuwait, and Bahrain. The country is also finalizing a term contract with Oman, which is its 12th-largest oil supplier.

This collaboration underscores India’s efforts to strengthen its energy security while fostering partnerships with key international players in the oil and gas sector.