World Markets

UAE ADNOC agrees with Japan agency to store more than 8.1 mln barrels of crude

Credit: REUTERS/CHRISTOPHER PIKE

UAE National Oil Co. [ADNOC.UL] signed an agreement for UAE-Japanese cooperation in the energy field with Japan's Agency for Natural Resources and Energy to store more than 8.1 million barrels of crude in Japanese storage facilities, state news agency WAM said on Monday.

Adds details and background

CAIRO, Jan 14 (Reuters) - UAE National Oil Co. ADNOC.UL signed an agreement for UAE-Japanese cooperation in the energy field with Japan's Agency for Natural Resources and Energy to store more than 8.1 million barrels of crude in Japanese storage facilities, state news agency WAM said on Monday.

The agreement represents a renewal and expansion of a previous agreement between the two parties to store crude oil that ended in 2019.

Under the terms of the new agreement - which extends for three years, ADNOC can store crude oil in Japanese facilities and sell it to its clients, provided that it supplies specific quantities of it to the Japanese market if a shortage of oil supplies in Japan occurs.

Japan's Ministry of Economy, Trade and Industry (METI) confirmed on Tuesday that storage capacity agreed with ADNOC was raised from the previous 1.0 million kilolitres (6.3 million barrels) to 1.3 million kilolitres, equal to about four days of Japanese oil consumption.

Japan imports about 25% of its oil from UAE.

The move comes as Japan seeks to strengthen the security of its energy supply amid geopolitical tensions in the Middle East that have been rising since last year. Natural resource-poor Japan buys 90% of its oil from the region.

In December, Japan Oil, Gas and Metals National Corp (JOGMEC) said it has renewed a deal with Saudi Aramco for crude oil storage on the island of Okinawa for another three years.

METI plans to map out a new resource strategy this year to reflect recommendations made in December by a government energy panel which called for the national reserve scheme for oil to be strengthened to ensure the country can secure key fuels.

(Reporting by Samar Hassan and Nayera Abdallah in Cairo; Additional reporting by Yuka Obayashi in Tokyo; Editing by Chris Reese and Kenneth Maxwell)

((Samar.Hassan@thomsonreuters.com;))

The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

Latest World Markets Videos

Reuters

Reuters, the news and media division of Thomson Reuters, is the world’s largest international multimedia news provider reaching more than one billion people every day. Reuters provides trusted business, financial, national, and international news to professionals via Thomson Reuters desktops, the world's media organizations, and directly to consumers at Reuters.com and via Reuters TV.

Learn More