The Abu Dhabi National Oil Company (ADNOC) renewed and expanded an agreement with Japan to store and trade crude in Asia’s second-biggest economy, according to the National.
The original agreement expired at the end of 2019, and the new one is set for an initial three-year period. Under the agreement, ADNOC will store more than 8 million barrels of crude oil (bbl), which are available for trade, at a storage facility in Japan, with taking into consideration that certain quantities of crude oil remain available in the case of any oil shortage in Japan.
Sultan Ahmed Al Jaber, UAE Minister of State and ADNOC CEO, noted that “[the agreement] positively contributes to Japanese energy security, while also supporting ADNOC’s broader trading ambitions.”
“The Joint Oil Storage Project is a most symbolic and mutually beneficial project for both countries and will contribute to the improvement of Japan’s energy security as well as the UAE’s access to Asian markets,” said Makihara Hideki, Japan’s Minister of Economy, Trade, and Industry.