Kuwait explores storing oil in Indian strategic reserves

Gulf nation-run firm expresses interest in leasing space from local entity operating caverns

- Rituraj Baruah

Kuwait's state-owned explorer and refiner is evaluating storing crude in Indian underground caverns under the second leg of the government's programme to boost strategic petroleum reserves in the world's third biggest oil importer.

Participation of Kuwait Petroleum Company in phase 2 is one of the new areas of cooperation being explored, the external affairs ministry said in its reply to the parliamentary committee's query on cooperation between India and the Gulf Cooperation Council (GCC). The information was shared with KPC on 10 November 2022 and the company has shown interest in storing its crude in the facilities of state-run Indian Strategic Petroleum Reserve Ltd (ISPRL), it said.

The status report on action taken by the government on the parliamentary panel's recommendations was submitted on Tuesday.

India's plan to augment strategic reserves is aimed at ensuring energy security during geopolitical tensions which tend to disrupt supplies and drive up prices, as seen in 2022 during the peak of Russia's war in Ukraine. Such reserves can be used in times of emergency.