Japan Agrees To Extend Aramco Oil Storage Deal

July 15, 2013

The Saudi Gazette reports that Tokyo has agreed in principle to allow Saudi Aramco to store crude in Japan beyond the end of 2013, a Japanese government official said Thursday, giving the top oil exporter continued access to a key supply depot close to its largest customers.

The contract, which was first agreed between Aramco and state-run Japan Oil, Gas and Metals National Corp (JOGMEC) in December 2010, has also helped Japan bulk up its emergency crude reserves.

The initial agreement allows Aramco to store up to 600,000 kiloliters (3.8 million barrels) of crude in Okinawa, southwest Japan, for three years ending December 2013.

In return for providing free storage space, Japan gets a priority claim on the stockpiles in case of an emergency.

Copyright: Saudi Gazette , 2013.