- Region: The Middle East
- Energy and Natural Resources
- Overseas Investment Loans
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The Japan Bank for International Cooperation (JBIC; Governor: Tadashi Maeda) signed on October 26 a loan agreement totaling up to USD360 million (JBIC portion) with INPEX CORPORATION (INPEX). The loan is co-financed with the Mizuho Bank, Ltd., the MUFG Bank, Ltd., and the Sumitomo Mitsui Banking Corporation, bringing the overall co-financing amount to USD600 million.
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This loan is intended to provide necessary funds for INPEX to acquire, through its subsidiary, interests in the Lower Zakum offshore oil field, located in the Emirate of Abu Dhabi (Abu Dhabi), the United Arab Emirates. In March 2018, the Abu Dhabi Supreme Petroleum Council (SPC) granted INPEX 10% interest for 40 years in the Lower Zakum offshore oil field. This large oil field has a target of approximately 450,000 barrels per day of crude oil production.
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In the fifth "Strategic Energy Plan" decided by the cabinet on July 3, 2018, the Japanese government maintains the goal of increasing its self-development ratio of oil and natural gas to 40% or more by 2030 in line with previous plans.
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Abu Dhabi is vital to Japan's resource strategy as the emirate allows the entry of foreign companies on the basis of concession agreements. In order to mutually confirm the importance of new interest acquisitions by Japanese companies, JBIC has signed a memorandum of understanding with Abu Dhabi National Oil Company (ADNOC) which manages Abu Dhabi's oil and gas businesses, taking into account the SPC's policy guidelines. At the same time, JBIC has indirectly supported Japanese companies' interest acquisitions in Abu Dhabi through a series of loans.*1 Thus this loan in connection with INPEX's acquisition of interests in the Lower Zakum oil field contributes to the enhancement of Japan's self-development ratio of oil and gas.
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As Japan's policy-based financial institution, JBIC will continue to actively support the development and acquisition of energy resources by Japanese companies and financially assist the securing of a steady energy supply for Japan, by drawing on its various financial facilities and schemes for structuring projects, and performing its risk-assuming function.
Note
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See Press Releases dated December 18, 2007, November 4, 2010, February 12, 2013, January 18, 2016, and June 27, 2017.