Asian advance challenges IOCs in the Gulf

Concession renewals in Abu Dhabi will test corporate appetites, as Middle Eastern governments hold out for more from their foreign partners

At first glance, Japan’s decision to extend $3 billion in loans to an already stupendously wealthy Gulf state appears generous. But that’s not how Tokyo sees it. The loan agreement finalised on 12 February between Japan Bank for International Cooperation (JBIC) and Abu Dhabi National Oil Corporation (Adnoc) is a strategic pitch to firm up Tokyo’s long-term oil supply arrangements with a key Gulf producer.  The quid pro quo is that Japanese companies will be assured crude supplies from Adnoc on a long-term basis. But the spin-offs go beyond the steady supply of crude. The deal could also help Japan Oil Development Company (Jodco) retain its portion of the Adma-Opco offshore concession, due fo