FINANCIAL NEWS

Saudi Aramco signs oil storage deal with Japan

15 Jun 2010

(MENAFN) Japanese Ministry of Economy, Trade and Industry said that Japan and Saudi Arabia have agreed on joint use of crude oil storage facilities in southern Japan in exchange for a preferential right to secure oil there in times of emergency, Reuters reported.

Japan?s Agency for Natural Resources and Energy and Saudi Aramco agreed in principle on a project under which Saudi Aramco will utilize crude oil storage facilities in Okinawa, the ministry said in a press release.

Under the agreement, by the end of this year, Japan will begin storing 3.78 million barrels of Saudi Aramco’s crude oil.

The project is expected to help Saudi Arabia deepen ties with oil markets participants in East Asia, while for Japan, it will contribute to increasing energy security by giving Japan higher priority in receiving oil supplies from the local oil storage in the event of an emergency, it said.

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