- Region: The Middle East
- Energy and Natural Resources
- Import Loans
January 18, 2016
The Japan Bank for International Cooperation (JBIC; Governor, CEO: Hiroshi Watanabe) signed on January 17 a facility agreement amounting up to USD2.1 billion (JBIC portion) with Abu Dhabi National Oil Company (ADNOC), in the presence of His Excellency Mr. Yosuke Takagi, Japan's State Minister of Economy, Trade and Industry, and His Excellency Khalifa Mohammed Al Kindi, a member of the Supreme Petroleum Council of the Emirate of Abu Dhabi and Chairman of the Central Bank of United Arab Emirates (UAE). This facility is cofinanced with The Bank of Tokyo-Mitsubishi UFJ, Ltd. (agent bank), Sumitomo Mitsui Banking Corporation, Mizuho Bank, Ltd., Mitsubishi UFJ Trust and Banking Corporation, Citibank Japan Ltd., Sompo Japan Nipponkoa Insurance Inc., and Sumitomo Mitsui Trust Bank, Limited, bringing the total cofinancing amount to USD3.3 billion.
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 produces most of the oil and gas in the UAE. This facility is intended to provide ADNOC with the necessary support to ensure stable imports of crude oil by Japanese companies, and is the fourth facility*1 provided to ADNOC with the aim of securing a long-term oil supply for Japan.
The UAE is vital to Japan's resource strategy as it has been a stable source of crude oil for more than 30 years, and because the UAE allows the entry of foreign oil companies to operate on the basis of concession agreements. JBIC has signed with ADNOC a succession of memorandum of understandings (MOUs) in the oil and gas sector, as well as in the environment sector,*2 and, in November 2015, signed a MOU aimed at further strengthening the comprehensive strategic partnership between Japan and ADNOC.*3 This MOU allows both parties to mutually recognize the significance of granting new concessions and renewing existing concessions involving Japanese oil development companies.
Approximately 60% of the Abu Dhabi oil field concessions owned by Japanese companies are currently scheduled to expire in 2018. Under such circumstances, the objective of this facility is to give indirect support towards the renewal of such offshore oil field concessions, on the basis of the above MOU signed in November 2015. The facility will thereby contribute to strengthening Japan's relationship with ADNOC, as well as with the UAE, which is important in terms of Japan's resource strategy, while contributing to securing a stable supply of energy resources to Japan.
As Japan's policy-based financial institution, JBIC will continue to financially support the securing of a stable supply of energy resources to Japan by proactively backing Japanese companies' development and acquisition of such resources, with its various financial facilities and schemes for structuring projects, as well as its risk-assuming function.
- *1 For the previous facilities provided to ADNOC, see Press Release of December 18, 2007, Press Release of November 4, 2010, and Press Release of February 12, 2013.
- *2 See Press Release of May 1, 2007, Press Release of November 4, 2010, Press Release of December 11, 2012, and Press Release of April 28, 2014.
- *3 See Press Release of November 10, 2015.