Abu Dhabi National Oil Company (Adnoc) has agreed to establish a strategic crude oil reserve in the Indian city of Mangalore having signed a deal with Indian Strategic Petroleum Reserves (ISPRL).

India’s state-owned ISPRL will have the capacity to store 5.86 million barrels of Abu Dhabi crude at the underground storage facility in Karnataka state, southern India.

The facility will be the third of its kind Adnoc has established in Asia with similar agreements leading to storage operations in Japan and South Korea.

ISPRL is also building underground oil storage facilities in Visakhapatnam in Andhra Pradesh and Padur in Karnataka to stockpile 20 million barrels, enough to meet India’s oil requirements for 10 days.