UAE oil producer Adnoc to receive Dh12bn loan from Japanese banks

Japan’s Bank for International Cooperation (JBIC) signed a loan agreement on Sunday with the UAE’s state-owned Abu Dhabi National Oil Company (Adnoc) for up to $2.1 billion to help secure long-term oil supplies.

Seven other Japanese firms, including the Bank of Tokyo-Mitsubishi UFJ, will provide additional financing, taking the total loan amount to $3.3bn, JBIC said in a statement on Monday.

The loans will help Japanese companies in their efforts to renew oil field concessions in the emirate of Abu Dhabi, of which 60 per cent will expire in 2018, said JBIC. Japan relies on Abu Dhabi for about a quarter of total crude imports.

“Under such circumstances, the objective of this facility is to give indirect support towards the renewal of such offshore oil field concessions,” JBIC said.

JBIC and other Japanese banks have provided three other loan facilities to Adnoc since 2007.

The other co-financing firms are Sumitomo Mitsui Banking Corporation, Mizuho Bank, Mitsubishi UFJ Trust and Banking Corporation, Citibank Japan, Sompo Japan Nipponkoa Insurance, and Sumitomo Mitsui Trust Bank.

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