NEW DELHI: The first-ever India-UAE crude oil transaction under the newly implemented Local Currency Settlement (LCS) system took place on Monday between Abu Dhabi National Oil Company (ADNOC) and Indian Oil Corporation (IOC), the Indian embassy in Abu Dhabi announced.
The transaction involved sale of about 1 million barrels of crude oil. Both Indian rupees and UAE dirhams were used for the transaction. India and the UAE have a strong oil and gas relationship and the UAE is a key partner for India’s energy security.
“This is India’s first-ever LCS and is expected to reduce transaction costs and time and increase reliance on local currencies. This will further add to the preferential terms accruing from CEPA,” the embassy said.