NEW DELHI: India and the United Arab Emirates agreed the framework for a strategic defence partnership on Friday (May 15), the Indian foreign ministry said, as they seek to deepen ties amid the Iran war.
The two countries also signed pacts on strategic petroleum reserves and supply of liquefied petroleum gas during a visit by Prime Minister Narendra Modi to the UAE, it added.
“The two sides have agreed on deepening defence industrial collaboration and cooperation on innovation and advanced technology, training, exercises, maritime security, cyber defence, secure communications and information exchange,” the ministry said in a statement.
Ahead of the visit, Indian sources told Reuters that Modi was likely to discuss long-term energy supply deals and also seek support to expand New Delhi’s strategic oil reserves. The UAE’s decision last month to leave OPEC is expected to boost its output and help importers such as India.
The Iran war has roiled global energy markets with the closure of the Strait of Hormuz, disrupting transportation and business across the region as Iranian strikes hit Gulf states, including the UAE, before a fragile ceasefire last month.
The oil pact announced on Friday includes a potential increase of ADNOC’s crude oil storage in India for up to 30 million barrels, Abu Dhabi’s state oil firm said in a separate statement, adding the deal also explores potential crude storage in the UAE’s Fujairah as part of India’s strategic reserve.
ADNOC said that it would explore expanded LPG supply and trading opportunities with Indian Oil Corp.
“India’s scale and growth trajectory make it one of the defining energy markets of our time. As demand accelerates alongside a rapidly expanding population, the strength of the UAE India energy partnership becomes ever more critical,” ADNOC managing director and CEO Sultan Ahmed Al Jaber said.
