India and UAE strengthen energy relations with the new strategic oil agreement
The relationship between the UAE and India has further expanded and deepened. The Israel-UAE "Normalization Agreement" operated by the United States was announced in August 2020 to open a new cooperation corridor, starting from the United States (and Israel) and going along the UAE (and Kuwait, Bahrain, and part of Saudi Arabia). India, as a region against China’s growing sphere of influence. At present, the success of China's turbine-driven machine expansion in the Middle East depends in large part on the performance of the energy sector. Similarly, the energy sector is also the starting point for the establishment of the United States-Israel-UAE-India alliance. This is completely reasonable, because the oil industry involves a large amount of capital, ships, equipment, technology, and personnel flows. This flow is usually carried out in secret, such as confidential bank accounts, intelligence personnel, and can be disguised as senior petroleum technicians and security personnel. Obtained military personnel, and ships that can be hidden by turning on the Automatic Ship Identification System (AIS), etc. Other industries cannot be compared with the oil industry that the country wants to conduct secretly.
According to various announcements, Reliance Industries, a major Indian conglomerate, outlined a plan to establish a major petroleum and petrochemical trading sector in the Emirate as part of a total investment of US$2 billion in the Emirate. This is the first time that Reliance Industries has reached such a deal in the Gulf region. This huge amount of money will flow into the UAE chemical joint venture TA'ZIZ, jointly established by Abu Dhabi National Oil Company (ADNOC) and sovereign wealth fund ADQ. OilPrice.com learned from local legal sources that ADNOC stated at the end of June that the final investment decision for projects related to the TA'ZIZ EPC contract will be made in the next few months, possibly before the beginning of 2022. In addition, these plants will also have the capacity to produce 940,000 tons of chlor-alkali, 1.1 million tons of dichloroethane and 360,000 tons of PVC annually. Abu Dhabi National Oil Company (ADNOC) is a new company allied with the United States and has an ideal corporate mechanism to promote such broader policies by strengthening cooperation with India. Currently, the Abu Dhabi National Oil Company (ADNOC)-already the largest energy producer in the UAE-produces around 4 million barrels (bpd) of crude oil per day, and this output will increase by at least another 1 million by 2030 Barrels (bpd), while natural gas production will also increase. With the continuous advancement of the plan, the United States has entered the final stage, that is, in the Asian sector, ensuring that India becomes a force that directly checks and balances China's development. Now the United States seems to have everything in place.
The CEO of Abu Dhabi National Oil Company (ADNOC) has repeatedly stated that he looks forward to establishing partnerships with more Indian companies in the energy giant's hydrocarbon value chain. TAZIZ is a typical example.
The executive added that he hopes the partnership will involve expanding the commercial scale and scope of the strategic reserve, because the Abu Dhabi National Oil Company (ADNOC) is currently the only overseas company approved to store India’s vital strategic oil reserve. In order to keep pace with the development of the partnership, the Indian government approved a proposal to allow the Abu Dhabi National Oil Company (ADNOC) to export oil to the Strategic Petroleum Reserve (SPR) without domestic demand, first to the Mangalore Strategic Storage (Located in Padur, another major strategic oil pool) export. This decision marks a major change in India’s policy in dealing with these important energy reserves, as India had previously completely banned oil exports to the Strategic Petroleum Reserve (SPR).