JBIC Signs Facility Agreement and MOU with ADNOC
Securing long-term supply of crude oil and strengthening strategic partnership with Abu Dhabi on decarbonization, energy transition, and energy efficiency

• Region: The Middle East
• Energy and Natural Resources
• Environment
• Import Loans

1. The Japan Bank for International Cooperation (JBIC; Governor: MAEDA Tadashi) signed on November 17 a facility agreement amounting to up to USD2.1 billion (JBIC portion) with Abu Dhabi National Oil Company (ADNOC) in the Emirate of Abu Dhabi (Abu Dhabi) in the United Arab Emirates (UAE). This facility is co-financed by Sumitomo Mitsui Banking Corporation (agent bank), Tokyo Branch of the Hongkong and Shanghai Banking Corporation Limited (HSBC), Mizuho Bank, Ltd., and MUFG Bank, Ltd., bringing the total co-financing amount to USD3 billion.
     
2. JBIC also signed on the same date a memorandum of understanding (MOU) with ADNOC aimed to further strengthen the comprehensive strategic partnership between JBIC and ADNOC.
     
3. ADNOC is a state-run oil company wholly owned by the Emirate of Abu Dhabi. This facility is intended to provide necessary support to ADNOC in ensuring stable imports of crude oil by Japanese companies. This is the sixth loan^*1 that JBIC has provided for ADNOC with an aim to secure a long-term supply of crude oil to Japan.
     
4. Abu Dhabi has been a stable and important supply source of crude oil to Japan for more than 40 years. Additionally, Abu Dhabi allows foreign oil companies to conduct business in the Emirate based on oil concession agreements. Abu Dhabi is therefore very important for Japan's energy resource strategy. In addition, Abu Dhabi has high potential in the decarbonization sector as it has abundant resources for renewable energy and subterranean structures suitable for CCS^*2/CCU^*3, and ADNOC is a leading organization in said sector. JBIC has been strengthening its relationship with ADNOC through a succession of MOUs in the oil and gas sector and the environmental sector^*4. This MOU focuses on the sectors including decarbonization, energy transition, and energy efficiency to address global challenges, and aims to promote collaboration between ADNOC and Japanese companies in these sectors.
     
5. This facility agreement and MOU will further enhance the multi-layered partnership between JBIC and ADNOC and strengthen Japan's relationships with Abu Dhabi as well as the UAE, which is an important country in terms of Japan's energy resource strategy, and promote the formation of projects that contribute to the establishment of a supply chain for hydrogen and fuel ammonia.
     
6. As a Japanese policy-based financial institution, JBIC will continue to provide financial support to Japanese companies in developing and acquiring energy resources in order to secure a stable energy supply to Japan, by drawing on its various financial instruments for structuring projects and expanding its risk-assuming function.
     

Note

1. *1 
   For information about the loans that JBIC has provided to ADNOC in the past, please refer to the press releases issued on: December 18, 2007, November 4, 2010, February 12, 2013, January 18, 2016 and January 16, 2018.
2. *2 
   Carbon dioxide Capture and Storage (CCS) is a technology that separates and captures carbon dioxide that would become a greenhouse gas and stores it in deep waterbeds or geological formations.
3. *3 
   Carbon dioxide Capture and Utilization (CCU) is a technology that separates and captures carbon dioxide that would become a greenhouse gas and utilizes it.
4. *4 
    For information about the previous partnerships, please refer to the press releases issued on: May 1, 2007, December 18, 2007, November 4, 2010, December 11, 2012, February 12, 2013, April 28, 2014, November 10, 2015, January 18, 2016, and January 16, 2018.