MUMBAI Nov 30 Indian Strategic Petroleum
Reserves Ltd (ISPRL), the government-owned company mandated to
store crude oil for emergency needs, has invited initial bids to
fill its storage facility in the southern state of Karnataka.
The strategic reserve is expected to be ready by the first
quarter of 2017, it said in a notice on Wednesday.
ISPRL has a total of 5.33 million tonnes or 36.87 million
barrels of storage facilities across three cities in southern
India - Vizag (1.33 mt), Mangalore (1.5 mt) and Padur (2.5 mt).
The current expression of interest is for Padur.
In 2005, the Oil Ministry set up ISPRL to build strategic
storage in India to hedge against volatility of crude oil prices
and sudden supply issues.
Once the facility is operational, India, which imports more
than 80 percent of its crude requirement, will have almost 10
days of strategic reserves which can be used during emergencies.
However, other big consumers of oil globally have around 50 days
The notice by ISPRL said that interested parties can opt for
filling any of the four or all four compartments it has built at
Padur, all of which are around 5 million barrels in capacity.
The storage facilities at Vizag and Mangalore are already
ready. The Vizag facility has been filled with Iraqi Basra oil
while part of the Mangalore facility is filled with Iranian
(Reporting by Promit Mukherjee; Editing by Alexander Smith)