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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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