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FINANCIAL NEWS
Japan allows Saudi Aramco to store crude beyond 2013
12 Jul 2013
(MENAFN) Saudi Aramco has been has been given an initial contract extension to store crude in Japan beyond the end of this year, giving the oil giant continued access to a key supply depot close to its largest customers, Reuters reported.
A Japanese government official said that the contract, first agreed between Aramco and Japan Oil, Gas and Metals National Corp (JOGMEC) in December 2010, has also helped the energy-hungry Asian nation bulk up its emergency crude reserves.
It allowed Aramco to store up to 3.8 million barrels of crude in Okinawa, southwest Japan, for three years ending December 2013, in exchange of giving Japan a priority claim on the stockpiles in case of an emergency.
Saudi Aramco started storing crude in Okinawa from February 2011, and has used the facility to supply oil to China, Japan and South Korea.
Details on the contract extension are still to be worked out, the official added.
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