India plans to participate with Aramco in developing its SPR

A document showed that India wants the giant Saudi oil company, Aramco, to participate in the country’s strategic petroleum reserve (SPR) program, which it plans to reach 6.5 million metric tons, amid the South Asian country’s efforts to strengthen relations with its main oil supplier.

According to Reuters, the two countries have talked about Aramco’s participation in the Strategic Petroleum Reserve Program for years. But the talks gained momentum after Crown Prince Mohammed bin Salman’s meeting with Indian Prime Minister Narendra Modi last month.

The Indian government said in an internal document, “Within the framework of the second phase of the Strategic Petroleum Reserves Programme, approval was given to establish two new commercial and strategic petroleum reserves with a size of 6.5 million metric tons,” and added, “Saudi Aramco may be invited to participate in the second phase.” ‎

India, the third largest importer and consumer of oil in the world, imports more than 80% of its oil needs. It established strategic reserves in three locations in the south of the country to store more than five million tons of oil to hedge against supply disruptions.