UAE energy giant, Japanese bank agrees on partnership in oil-gas sector

Abu Dhabi National Oil Company (ADNOC), the energy giant of the United Arab Emirates (UAE), signed on Sunday a memorandum of understanding (MoU) with a Japanese bank to set up a comprehensive partnership in the oil and gas sector.

The document between ADNOC and the Japan Bank for International Cooperation (JBIC) was signed in the presence of Japanese Prime Minister Shinzo Abe who is on an official visit to the oil-rich Mideast country, local Emirates News Agency reported here.

According to the report, the MoU seeks to establish a comprehensive and strategic partnership by setting out consultations and information sharing.

It will increase opportunities of mutual business development for Japanese companies and ADNOC in the oil and gas sector and realize the long-term crude oil transaction between ADNOC and Japanese oil companies, thereby contributing to the securing of stable energy supply to Japan, said the report.

Japan has steadily imported huge amounts of crude oil from ADNOC for more than 30 years as the UAE is currently the second largest source of crude oil supply to Japan, accounting for about 25 percent of its total crude oil imports.

ADNOC owns most of the oil and gas reserves and production facilities in the UAE.

The UAE’s proven oil reserves stand at 98.2 billion barrels, representing 9.5 percent of world oil reserves. Its proven natural gas reserves are estimated currently at 5.8 billion cubic meters, or 4 percent of the world’s total.

Source: Xinhua