UAE Emerges as Major Oil Supplier to India

Nov 7, 2026

86 min

Nov 7, 2026 03:31

How the UAE became one of India’s biggest oil suppliers

## Strategic Oil Partnership

The United Arab Emirates (UAE) has become a significant oil supplier to India, with a strategic partnership that began in 2018. This collaboration started when the UAE's Abu Dhabi National Oil Company (ADNOC) stored 5.86 million barrels of crude oil in India's Mangalore reserve. This move was part of a broader agreement allowing ADNOC to store up to 30 million barrels in India.

## Expanding Oil Trade

India's oil imports from the UAE have grown significantly over the years. In the 2011-12 financial year, India imported $15.1 billion worth of oil from the UAE, making up 8.7% of its total oil imports. By 2018, India's daily oil imports had increased to approximately 4.4 million barrels, with the UAE being a key supplier.

## Joint Ventures and Investments

Indian companies have also invested in UAE oilfields. In 2018, a consortium of Indian companies acquired a 10% stake in Abu Dhabi's Lower Zakum offshore concession for $600 million. This investment marked India's first venture into Gulf oil production, securing a steady supply of crude for the future.

## Future Storage Plans

In 2026, discussions emerged about India potentially storing part of its strategic oil reserve in Fujairah, UAE. This location offers a strategic advantage as it allows oil shipments to bypass the Strait of Hormuz, a critical chokepoint in global oil transportation.

## Beyond Crude Oil

The partnership between India and the UAE extends beyond crude oil. In 2025, ADNOC signed a 15-year agreement to supply Indian Oil with up to one million tonnes of liquefied natural gas (LNG) annually. Additionally, ADNOC Gas secured a 10-year LNG contract with Hindustan Petroleum Corporation in 2026, further solidifying the energy ties between the two nations.

Read the full story at the source

What you need to know to get Emirates ID?

Leave your details and get a guide as a gift to avoid mistakes

Article contents

LinkedIn X Facebook WhatsApp Telegram