- Region: The Middle East
- Energy and Natural Resources
- Import Loans
February 12, 2013
- The Japan Bank for International Cooperation (JBIC; Governor: Hiroshi Okuda) signed on February 10, a loan agreement amounting up to 3 billion U.S. dollars with Abu Dhabi National Oil Company (ADNOC), the national oil company of the Emirate of Abu Dhabi, United Arab Emirates (UAE).This loan is cofinanced with The Bank of Tokyo-Mitsubishi UFJ, Ltd. (agent bank), Sumitomo Mitsui Banking Corporation and Mizuho Corporate Bank, Ltd. and the above loan amount includes the cofinanced portion amounting to 0.9 billion U.S. dollars. The signing was made by JBIC and ADNOC in the presence of Minister Motegi, Ministry of Economy, Trade and Industry and H.E Abdulla Nasser Al Suwaidi, Director General of ADNOC in Abu Dhabi, UAE.
- ADNOC, a Government of Abu Dhabi state owned company, conducts oil and gas businesses in Abu Dhabi, which produces most of the oil and gas in UAE. This loan is intended to finance ADNOC to expand their oil and gas development, following loans*1 in December 2007 and November 2010 to secure a long-term and stable supply of crude oil to Japan.
- The UAE is an important country for Japan's resource strategy, since it has been a stable source of crude oil to Japan for more than 30 years. In addition, the UAE is one of the few countries that allow the entry of foreign-affiliated oil companies to operate on the basis of concession agreements. Also, part of the crude oil produced in Abu Dhabi can be loaded without using ship transport through the Strait of Hormuz, as the result of the commissioning of the Abu Dhabi Crude Oil Pipeline (Fujairah Oil Pipeline), which has increased its strategic importance. JBIC previously signed memorandum of understandings*2 to establish a comprehensive and strategic partnership with ADNOC in April 2007, November 2010 and December 2012, thereby supporting to further strengthening of the partnership with UAE and secure a stable supply of energy resources to Japan.
- JBIC will continue to actively support Japanese businesses that promote the development and acquisition of energy resources by drawing on its various financial facilities and schemes for structuring projects and performing its risk-assuming functions.
- *1 See Press Releases on December 18, 2007 and Press Releases on November 4, 2010.
- *2 See Press Releases on May 1, 2007, Press Releases on November 4, 2010, and Press Releases on December 11, 2012.