UAE – Mubasher: The Abu Dhabi Supreme Petroleum Council, represented by Abu Dhabi National Oil Company (ADNOC), and the Agency for Natural Resources and Energy of Japan, have concluded a three-year strategic energy cooperation agreement, Emirates News Agency (WAM) recently reported.
The oil storage deal, which extends and expands a previous strategic crude oil storage agreement that expired at the end of 2019, allows ADNOC to store over 8 million barrels of crude oil at storage facilities in Japan.
ADNOC can further trade such oil with customers provided that certain quantities of crude oil should be available in the event of a shortage of oil in Japan.
Both of the crown prince of Abu Dhabi and deputy supreme commander of the UAE Armed Forces, Sheikh Mohamed bin Zayed Al Nahyan, and prime minister of Japan, Shinzo Abe, have attended the signing ceremony.
Commenting on the deal, minister of state and ADNOC Group CEO, Sultan bin Ahmad Sultan Al Jaber, said, “We are pleased to extend and expand our storage agreement which positively contributes to Japanese energy security, while also supporting ADNOC’s broader trading ambitions."
Meanwhile, Japan’s state minister of economy, trade, and industry, Makihara Hideki, explained, "Given the current world geopolitical situation, it is well-timed to expand our Joint Oil Storage Project. I really hope that our bilateral relationship between Japan and UAE will be further strengthened through the project."
Furthermore, Japan is ADNOC’s largest international importer of oil and gas products, as around 25% of its crude oil is imported from the UAE. Bilateral trade has further grown over the recent years, with Japan’s exported goods to the UAE totalling about $7.9 billion while the country's imported goods from the UAE amounted to nearly $27.5 billion in 2018.