India signs landmark pact with UAE to fill its strategic oil reserves

New Delhi: India on Wednesday signed a deal with the United Arab Emirates, allowing the Gulf nation to fill the country`s strategic storage facility in southern India.

India in 2014 began talks to lease part of its strategic storage to Abu Dhabi National Oil Co (ADNOC). Under such a deal, India would have first rights to the stored crude in case of an emergency, while ADNOC would be able to move cargoes to meet any shift in demand.

The deal was signed by India`s oil minister Dharmendra Pradhan and a representative of ADNOC after a meeting between Prime Minister Narendra Modi and Abu Dhabi`s Crown Prince Sheikh Mohamed bin Zayed al-Nahyan.

"Our energy partnership is an important bridge in our linkages. It contributes to our energy security," Modi said. The two sides had discussed ways to advance their energy ties through specific projects, he added.

"In this regard, long-term supply contracts and establishment of joint ventures in energy sectors can be beneficial," Modi said.

The prince will be the guest of honour at India`s Republic Day parade on Thursday, in a warming of ties.