In a bid to increase its energy security, India plans to add two more strategic crude oil reserves, according to the country’s Finance Minister Arun Jaitley.
Specifically, the reserves will be set up in Bikaner and Orissa in addition to three facilities the country already has. They will be run by Indian Strategic Petroleum Reserves Ltd (ISPRL), with the help of the Oil Industry Development Board.
Similarly, ISPRL and Abu Dhabi National Oil Company (ADNOC) have agreed to build a strategic crude oil storage in Mangalore with a capacity of 5.86 million barrels of crude oil. The companies stated that this will be very helpful, considering that the country is vulnerable to disruptions in oil supply.
Jaitley also revealed plans to merge India’s 13 state-owned oil companies and form a large corporation with over $100 billion in valuation, giving it an equal footing with some of the oil giants in the world. He said:
“We propose to create integrated public sector oil major which will be able to match the performance of international and domestic private sector oil and gas companies. [Merger] will give them capacity to bear higher risks, avail economies of scale, take higher investment decisions and create more value for shareholders.”
The companies to be merged include the Oil and Natural Gas Corporation Limited (ONGC), Indian Oil Corporation, and Gas Authority of India Limited (GAIL), among others.