- Region: The Middle East
- Energy and Natural Resources
- Import Loans
December 18, 2007
- Japan Bank for International Cooperation (JBIC; Governor: Koji Tanami) signed on December 17 a loan agreement totaling up to US$3 billion with Abu Dhabi National Oil Company (ADNOC), the national oil company of the Emirate of Abu Dhabi, United Arab Emirates (UAE), in the presence of Prime Minister Fukuda and H.H. Sheikh Mohammed bin Zayed Al Nahyan, Crown Prince of Abu Dhabi and Deputy Supreme Commander of the UAE Armed Forces. The loan was cofinanced with Bank of Tokyo-Mitsubishi UFJ (lead arranger), Tokyo Branch of BNP Paribas Bank, Sumitomo Mitsui Banking Corporation, Citibank Japan Ltd., and Mizuho Corporate Bank.
- he primary purpose of this loan facility is to secure stable supply of crude oil from ADNOC. COSMO OIL Co., Ltd. and other Japanese oil companies will conclude five-year or longer off-take contracts for crude oil totaling 120,000 barrel/day with ADNOC, thus securing a long-term supply of crude oil throughout the duration of this agreement.
- ADNOC, a state-run oil company wholly owned by the Abu Dhabi government, conducts oil and gas business in the Emirate of Abu Dhabi, which owns most of the oil and gas reserves and production facilities in UAE. Abu Dhabi is abundantly endowed with highly versatile quality light crude oil, and Japan has steadily imported crude oil and others from ADNOC for more than 30 years. Abu Dhabi also allows entry of international companies to its upstream assets on the basis of concession agreements, and one third of Japanese equity oil is imported from this Emirate. The loan facility will contribute to further strengthening the relationship with Abu Dhabi, which plays an indispensable role in Japanese energy security.
- Based on the MOU on comprehensive strategic partnership that JBIC signed with ADNOC during the former Prime Minister Abe's visit to UAE in April this year, JBIC has had close discussions with ADNOC, including over the provision of this loan. JBIC will continue to help further deepen and expand the multi-layered economic relationship with UAE by strengthening ties with ADNOC over the coming years. Furthermore, taking advantage of its status as an official financial institution, JBIC intends to actively support projects that are conducive to the securing of resources that are important for Japan, by accelerating formation of such projects and utilizing its risk taking function.