Abu Dhabi: Japan is trying to increase equity in oil sector and is looking forward to Abu Dhabi oil concessions for the companies, a visiting minister from the country told Gulf News.
Yosuke Takagi, state minister of economy, trade and industry said energy is important for the country. “We have scarce fossil fuel resources and have to depend on imports for energy security. We are trying to increase equity in oil,” said Takagi who is on a UAE visit to hold discussions with officials on a wide range of issues.
The minister signed a memorandum of cooperation with Abu Dhabi on joint oil storage facility on Sunday. “Through such initiatives, we would like to further strengthen our relations.”
As per the agreement, Ministry of Economy, Trade and Industry will provide Adnoc with private crude oil tanks of approximately 6.3 million barrels for it to store its crude oil in Japan. In case Japan faces an oil supply shortage Adnoc will give priority to Japan with regard to its storage.
Japanese companies were involved for 41 years in the development of oil sector in Abu Dhabi. Last month, Inpex, Japan’s largest oil and gas exploration production company through its wholly owned subsidiary, Japan Oil Development Company Ltd (Jodco), commenced oil production from the Umm Lulu offshore oilfield in Abu Dhabi.
Full field development of the Umm Lulu Oil Field is currently in progress, and after completion, the field is expected to produce oil at a peak rate of 105,000 barrels per day.
In January this year, Inpex announced that the government of Abu Dhabi had decided on the extension of the concession for the Upper Zakum oilfield offshore Abu Dhabi to December 31 2041 by adding more than 15 years to the previous term.
The minister said that the government is working together with the business sector so that production of oil through projects in which companies participate will be successful. “We have worked closely with Abu Dhabi in the areas of energy and also in other sectors.”
