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    The Indian Eye
             OPINION                                                                   AUGUST 21, 2026                                      12

            ty. The latest MoU aims to invest in                                                                  armed attacks, regardless of its loca-
            overseas SPR stockpiles through tac-                                                                  tion nearly 70 nautical miles (approx-
            tical cooperation with the UAE.                                                                       imately 130 kilometers) from the pri-
                This direction taken by  India                                                                    mary  site  of  conflict.  A  recurrence
            builds on its Integrated Energy Policy                                                                of such attacks in the future could
            (IEP, 2006) and the vision to institute                                                               impact New Delhi’s access to SPR,
            overseas SPR, which has been a key                                                                    especially during any potential short-
            pillar in India’s strategic planning. As                                                              fall. This problem might be aggravat-
            per the IEP, “…reserves equivalent                                                                    ed by unprecedented shocks to glob-
            to 90 days of oil imports should be                                                                   al energy markets, including cyber
            maintained for strategic-cum-buffer                                                                   espionage or overwhelming damage
            stock purposes and/or buy options for                                                                 to the overall port. Therefore, while
            emergency supplies from large storag-                                                                 the port city offers a certain degree
            es available in the neighboring coun-                                                                 of flexibility in mitigating disruptions
            tries”. Within the framework of its                                                                   to maritime trade and transit within
            domestic infrastructure, the current                                                                  the energy context, it would not be
            capacity of 39 million barrels is avail-                                                              unconditional and would come with
            able cumulatively at sites such as Man-                                                               security challenges.
            galuru, Visakhapatnam and Padur.                                                                          The Press Information Bureau
                At maximum capacity, these fa-                                                                    (PIB) backgrounder issued by the
            cilities are believed to meet around                                                                  Government  of  India  following  the
            10 days of national crude oil needs.                                                                  May 2026 bilateral meeting clearly
            Nevertheless, at existing levels, they                                                                laid down New Delhi’s strategic in-
            can meet approximately five days of                                                                   terests in engaging Abu Dhabi on a
            total crude oil requirements, cur-                                                                    much more expansive scale within
            rently operating at 64 per cent ca-                                                                   the energy sector. The document ac-
            pacity, when viewed independently                                                                     knowledged that the agreement ‘will
            of the commercial stocks managed                                                                      support  India’s efforts  to diversify
            by private enterprises such as HPCL,                  India and the UAE have been engaged in          energy sources and expand storage
            IOC and BPCL. When the govern-      an SPR arrangement since 2018, under which oil has been stored at Mangaluru for India’s   capacity’.  The  partnership  will  also
            ment-operated SPR reserves and                  strategic use and for the UAE to re-export (File photo)  help build a secure and future-ready
            privately owned reserves are viewed                                                                   energy ecosystem.
            as part of a cumulative stockpile, the                                                                    As the MoU is developed fur-
            available energy stockpile can ap-  economically and commercially vi-  native for countries such as India   ther, it would become imperative for
            proximately last anywhere between   able energy resources available in   seeking to institutionalize a robust   India and the UAE to institutionalize
            60 and 74 days.                   the global market during periods of   energy infrastructure, especially giv-  clear operational and logistical guide-
                Suresh Gopi, the Minister of State   heightened tension, and instead rely   en the challenges confronting global   lines specifying the burden-sharing
            for Petroleum, noted in Parliament in   on already-existing stockpiles, ready   energy supply chains. Nonetheless,   arrangements, timelines and broader
            March 2026 that India has “SPR facil-  to be deployed during a period of, for   certain risks and considerations re-  responsibilities. It would prove ben-
            ities with a total capacity of 5.33 mil-  example, a domestic shortfall.  main that might impact New Delhi’s   eficial for both countries to period-
            lion metric tons (MMT) of crude oil at   The geographical positioning   energy security architecture, espe-  ically engage in scenario-building
            three locations in Andhra Pradesh and   of India’s SPR in ports based in Fu-  cially in the context of an overseas   exercises to simulate potential crises
            Karnataka, which can act as buffer for   jairah provides India with a strategic   SPR hub.            or inflexion points under which the
            short-term supply shocks”.        buffer to offset the consequences     Fujairah’s location, while pro-  release or sale of SPR would take
                These SPR facilities are de-  of future disruptions in the Strait of   viding a noticeable strategic buffer   place, thereby enhancing energy se-
            signed to act as emergency reserves   Hormuz. Fujairah’s location on the   vis-à-vis the Strait of Hormuz, is also   curity preparedness and enabling
            to offset energy supply chain disrup-  UAE’s eastern front, facing the Gulf   vulnerable to acts of sabotage by a   both parties to better prepare for any
            tions caused by unexpected crises,   of Oman, creates conducive condi-  state or non-state actor. This caution   unexpected future developments.
            such as the ongoing conflict in West   tions for any potential transit vessels   must be borne in mind, especially in   If proved successful, Fujairah
            Asia, as well as stabilize oil prices   en route to India to bypass similar   the aftermath of the hostilities that   would serve as a template for estab-
            that tend to fluctuate amid any tur-  blockades or armed hostilities that   resulted in the cessation of several   lishing other Indian overseas SPR
            moil.  However, the existing energy   are currently underway.       oil-loading operations in Fujairah in   hubs in the future alongside tradition-
            reserves available at the above-men-  It also carries the potential to   March 2026. This followed a drone   al and emerging energy security part-
            tioned SPR facilities are insufficient   counter energy insecurity, at least   attack and the outbreak of a fire at   ners, while also transforming India’s
            to meet the overall requirements,   over the short term, by exporting oil   the UAE’s critical energy hub.  energy security and resilience outlook.
            given that India continues to import   required by India via the Abu Dhabi   Furthermore,  in  May  2026,  de-  Saman Ayesha Kidwai is
            at least 88 per cent of the total crude   Crude Oil Pipeline (ADCOP) or the   spite the steady flow of tankers car-  an Associate Fellow (Counter Terror-
            oil required.                     Habshan–Fujairah oil pipeline. This   rying  grains  and  crude  oil  to  their   ism Centre) at MP-IDSA.
                The  latest  MoU  therefore  po-  pipeline can carry between 1.5 and   respective destinations, a drone at-
            sitions Fujairah, a vital city located   1.8 million barrels of oil per day. The   tack resulted in the injury to three   Views expressed are of the author and
                                                                                                                   do not necessarily reflect the views of
            on the Emirates’ eastern coast, as a   ADCOP is a notable strategic ener-  workers operating out of the port of   the Manohar Parrikar IDSA or of the
            strategic overseas energy hub. The   gy corridor launched by the UAE to   Fujairah, while the targeting of the   Government of India.
            hub will allow New Delhi to pur-  provide short-term alternatives to   Fujairah Oil Industry Zone resulted
            sue  tactical  positioning  of  offshore   maritime disruptions at the critical   in a fire outbreak at one of the port   This article first appeared in the
            energy reserves to address rising   chokepoint of the Strait of Hormuz.   city’s most vital energy facilities.  Comments section of the website (www.
            energy demands amid geopolitical   It became operational in 2012.       The second incident, in particu-  idsa.in) of Manohar Parrikar Institute
            tensions. Additionally, it would al-  Cumulatively,  Fujairah  rep-  lar, is a reminder that a major energy   for Defense Studies and Analyses, New
            low India to avoid competing for   resents an important strategic alter-  facility in Fujairah is not immune to   Delhi, on August 11, 2026

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