India's junior oil minister, Petrochina, a significant producer of oil in China, is one of several international firms that have expressed interest in developing additional strategic petroleum reserves (SPRs) there.
Global corporations like BP, Shell, and traders Trafigura, Vitol, Glencore, Vopak, and KNOC expressed interest during two roadshows staged to solicit private investment for the construction of the SPRs, according to Rameswar Teli.
Three areas in southern India hold 5.55 million tonnes of crude reserves, making it the third-largest importer and consumer of oil in the world. The construction of two additional SPRs, a 6.5 million-ton facility at Chandikhol in eastern Odisha state and a 2.5 million-ton cavern at Padure in southern Karnataka state, with the assistance of private enterprises, was approved by the Indian cabinet in 2021.
The federal government would be the owner of the SPRs. Teli stated that in the event of any shortages, the government will hold the first right over the crude oil. At the conclusion of the 60-year concession period, Teli stated, "The concessionaire shall transfer the SPR along with the single mooring point, onshore and offshore pipeline to the government."
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