UAE to store up to 30 million barrels in India's oil reserves after PM's visit

India and the United Arab Emirates have agreed to significantly deepen their energy partnership, with the UAE set to store up to 30 million barrels of crude oil in India’s Strategic Petroleum Reserve, the Ministry of External Affairs said on Friday after Prime Minister Narendra Modi’s short visit to Abu Dhabi.

The agreement emerged from wide-ranging talks between Prime Minister Modi and UAE President Sheikh Mohamed bin Zayed Al Nahyan, with both leaders also stressing the importance of “safe transit passage and unimpeded navigation through the Strait of Hormuz” amid rising regional tensions.

In a statement, the MEA said the two leaders “welcomed the conclusion of a Strategic Collaboration Agreement between Indian Strategic Petroleum Reserves Limited and Abu Dhabi National Oil Company to enhance UAE’s participation in India’s Strategic Petroleum Reserves to 30 million barrels.”

The move is expected to strengthen India’s energy security at a time when global crude supplies remain vulnerable to disruptions in West Asia.

The two countries also agreed to work together on setting up strategic gas reserves in India and welcomed a separate arrangement between Indian Oil Corporation and ADNOC for long-term LPG supplies.

Calling the UAE an “important partner in India’s energy security,” the MEA said both sides agreed to pursue “new initiatives for a comprehensive energy partnership” covering crude oil, LNG and LPG supplies.

Beyond energy, the visit also saw the announcement of USD 5 billion in UAE investments into India across banking, infrastructure and finance sectors, alongside new agreements in defence, maritime cooperation, shipbuilding and advanced computing.

Prime Minister Narendra Modi’s visit to Abu Dhabi came amid rising geopolitical tensions in West Asia and ongoing volatility in global energy markets. According to the MEA statement, the two leaders held detailed discussions during which the Prime Minister reaffirmed India’s strong condemnation of the attacks on the UAE and expressed solidarity with the country’s leadership and people.

With concerns mounting over possible disruptions to key shipping lanes such as the Strait of Hormuz due to the regional conflict, India and the UAE underlined the importance of regional stability, secure trade routes and stronger economic cooperation.

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