Abu Dhabi – MENA Herald: A delegation from ADNOC, led by H.E. Dr Sultan Al Jaber, Minister of State and CEO of ADNOC, conducted visits to Japan and South Korea, aimed at building on ADNOC’s long-standing relationships with its partners in both countries, while also exploring new business opportunities in oil, gas, refining and petrochemicals.
During the visit to Japan, the delegation met with Motoo Hayashti, Minister of Economy, Trade and Industry (METI). ADNOC also hosted a reception in Tokyo, attended by senior executives from ADNOC’s partners and customers, including the Japan Oil Development Company, JX Holdings, TEPCO, Cosmo Oil, TonenGeneral, Idemestu, Marubeni, JX Nippon and Mitsu. While in South Korea, the ADNOC delegation met with the senior executives of the Korean National Oil Company GS Caltex Corporation, SK Gas, E1 and Samsung.
H.E. Dr Al Jaber said: “The visits reflect the significant importance the UAE places on its long-term energy partnerships with Japan and South Korea, which have contributed to a deepening of economic ties and an increase in mutually beneficial investments.
“We have long been a trusted and reliable supplier of oil, gas and refined products to Japan and South Korea. As such, we aim to build on these deep-rooted and long standing partnerships to explore new upstream and downstream opportunities, and offer a larger share of ADNOC’s portfolio of refined and petrochemical products.”
In addition to the investments by Japanese and South Korean oil and gas companies in the UAE’s energy exploration and production sectors, ADNOC has strategic agreements to utilize the oil storage facilities in both countries, designed to enhance and maintain security of supply.
In Japan, the UAE has oil stored in the Kiire’s Oil Terminal, in Kagoshima City and in South Korea a similar agreement allows ADNOC to store oil in KNOC’s Strategic Petroleum Reserve.
Both Japan and South Korea get most of their oil from the Middle East for their crude oil supplies. Nearly 82% of Japan’s crude oil imports come from the region, of which ADNOC in 2015 supplied 33% (792,000 bpd) making it the second largest crude exporter to Japan. ADNOC also supplies Japan and its companies with LNG and various refined products, including Naphtha, and Propane, Butane, Sulphur, Ethylene and Propylene.
Meanwhile, South Korea receives 84% of its oil supplies from the Middle East, of which 11% (258,000 bpd) is supplied by ADNOC. The ADNOC Group also supplies South Korea with various types of Naphtha, Propane and Butane.
As well as Japan and South Korea, ADNOC has relationships with a number of other Asian countries, including China and Singapore, where the marketing head office of Borouge, a joint venture between ADNOC and Borealis, is located. The office focuses on the global sales and marketing activities of Borouge, particularly India, Australia, New Zealand, Middle East, North and South East Asia. Borouge is a leading provider of innovative plastics solutions.
ADNOC’s relationship with China was strengthened in 2014, when ADNOC and CNPC established a joint venture, Al Yasat Petroleum Operations Company, to explore developing undeveloped onshore and offshore fields.
ADNOC is a major diversified group of energy and petrochemical companies, that produces 3.1 million barrels of oil a day. Its integrated upstream and downstream activities are carried out by 18 specialist subsidiary and joint venture companies.