The governmental Japan Bank for International Cooperation has decided to extend massive loans to Abu Dhabi National Oil Co. in exchange for securing a stable oil supply for Japan, JBIC officials said Sunday.
The policy-based financial institution is considering lending several billion dollars in the coming years to help meet the Persian Gulf country’s $ 20 billion demand to boost its crude production and its economy, the officials said.
The move, under which Japan initially plans to extend $ 1 billion, or some 120 billion yen, by the end of this year, will draw attention as a new method of securing crude oil supply.
JBIC Gov. Kyosuke Shinozawa, who is accompanying Prime Minister Shinzo Abe on his eight-day trip to the Middle East, was slated to sign the agreement with the ADNOC head.