Odisha's Chandikhol Crude Oil Reserve Project Receives Boost with Strategic Partnership
The long-awaited Chandikhol crude oil reserve project in Jajpur district, Odisha, has gained momentum following a strategic collaboration agreement between the Indian Strategic Petroleum Reserves Limited (ISPRL) and Abu Dhabi National Oil Company (ADNOC).
Key Highlights:
- Project Value: ₹8,743 Crore
- Crude Oil Storage Capacity: Up to 30 million barrels
- Partnership: India-UAE partnership for strategic petroleum reserve
The agreement, signed during Prime Minister Narendra Modi's visit to the UAE, aims to expedite the implementation of the Chandikhol project, which had been stalled for nearly eight years due to land acquisition and statutory clearance hurdles.
About the Project:
- Project Location: Chandikhol, Jajpur district, Odisha
- Storage Capacity: 4 million metric tonnes (MMT) of underground crude oil
- Role in National Logistics Network: Strengthen the eastern coast's role in the national petroleum logistics network
The project, approved by the Union cabinet in June 2018, will significantly augment the country's energy security buffer and create a critical strategic and commercial storage hub on the eastern coast.
Progress and Future Prospects:
- Tripartite Agreement: Signed between ISPRL, IPICOL, and Union Petroleum minister Hardeep Singh Puri, Chief Minister Mohan Charan Majhi, and Union Education minister Dharmendra Pradhan
- Land Transfers: State government has accelerated the process of transferring required land to ISPRL, the executing agency
- Projected Reserve Capacity: 68 million barrels with ADNOC's proposed participation
Energies sector analysts believe that the Chandikhol facility will play a crucial role in the country's energy security, given its proximity to Paradip port, refinery infrastructure, and expanding petrochemical investments in the region.