Strategic oil storage plan hits roadblock

India’s plan to build underground strategic oil storage capacities suffered a setback after three oil rich countries rejected New Delhi’s offer. “Saudi Arabia, Oman and Sudan are not interested to participate (in strategic oil storage projects),” said an oil industry official privy to the development. “They do not see good returns on investment in these projects, which they made clear in the last bilateral meetings during last few months,” the official said. India proposed to offer land in Rajasthan for Gulf nations to set up their storage stations. The facilities in Rajasthan would have been connected through Kandla port. These projects would help India to build strong bilateral relationship with the countries along with securing an emergency backup of crude and petroleum products. The proposal was discussed when a high-level delegation headed by Prime Minister Manmohan Singh visited Saudi Arabia in February this year. (July 12, 2010)