Mauritius and India have signed an MoU for Indian Oil Corporation (IOC) and Mangalore Refinery and Petrochemicals Limited to set up oil storage terminals on the Indian Ocean island.
The MoU provides for the setting up of a joint venture company, conduct of a feasibility study and co-operation in the marketing of petroleum products. The terminals are expected to boost the opportunities for petroleum product trading in the region and also improve the strategic supply of oil in Mauritius.
The project would cater for the re-export of product to the different islands across the Indian Ocean as well as to the African continent. The cost of the project is estimated at more than US$130 million.
The Mauritius State Trading Corporation currently imports about 1.2 million tonnes of petroleum products, but has no storage facilities.
As part of the MoU, the setting up of floating storage is also being considered by potential operators as a temporary arrangement until ground oil reservoirs are available.
Mangalore Refinery and Petrochemicals Limited, a subsidiary of India’s oil exploration company Oil and Natural Gas Corporation, operates a refinery of 15 million tonnes a year in southern India. IOC owns and operates more than 130 terminals across India and abroad.