The Indian government has allowed Abu Dhabi National Oil Company (ADNOC) to export crude oil stored in underground strategic storages at Mangalore strategic petroleum reserve, Press Trust of India reported.
The move will give operational flexibility to the UAE oil giant, the newspaper said, citing an order from the Indian Ministry of Commerce and Industry.
Currently, crude oil is not allowed to be exported except through the state-owned Indian Oil Corporation.
ADNOC Marketing International (India) RSC Limited is allowed to re-export crude oil from their commercial stockpile at Mangalore strategic petroleum reserve at their own cost, the ministry said in an order.
The Indian Strategic Petroleum Reserve Limited has leased half of the 1.5 million tonne capacity in Mangalore storage to ADNOC.  
India, the world's third-biggest oil importer and consumer, has built strategic storages at three locations to store up to 5.33 million tonnes of oil as insurance against any supply disruption.
ADNOC sought permission to export its oil as it could not find buyers in Indian refiners, the report said.

(Editing by Seban Scaria