Abu Dhabi, April 29th, 2007 (WAM)- Japan Bank for InternationalCooperation (JBIC) today signed a memorandum of understanding with AbuDhabi National Oil Company (ADNOC) for establishing a comprehensive partnershipfor business development in the oil and gas sector.

The MoU, concluded on the final day of the UAE-Japanese EconomicForum, was signed by ADNOC CEO Yousef Omair bin Yousef and JBIC GovernorKyosuke Shinozawa, in the presence of the Japanese Prime Minister.

The MOU seeks to establish a comprehensive and strategic partnershipbetween JBIC and ADNOC by setting out consultations and information sharingon such issues as investment plans of ADNOC as well as JBIC's lendingschemes. It will increase opportunities of mutual business developmentfor Japanese companies and ADNOC in the oil and gas sector, and realizethe long-term crude oil transaction between ADNOC and Japanese oil companies,thereby contributing to the securing of stable energy supply to Japan.

ADNOC, which conducts oil and gas business in the Emirate of AbuDhabi, owns most of the oil and gas reserves and production facilitiesin the UAE. Abu Dhabi is abundantly endowed with highly versatile qualitylight crude oil, and Japan has steadily imported huge amounts of crudeoil from ADNOC for more than 30 years. Currently the UAE is the secondlargest source of crude oil supply to Japan, accounting for about 25%of Japan's total crude oil imports. the UAE is also one of the few countriesin the Middle East that allow inflow of foreign companies on the basisof concession agreements, and several Japanese companies are currentlyoperating oil and gas production business in the country. In this way,the UAE plays a key role in securing stable energy supply for Japan.

Japan's Basic Energy Plan, which was revised in March this year,reemphasized the need for "strengthening strategic and comprehensiveties with the countries endowed with natural resources" as a strategicapproach for securing stable supply of oil and other energy sources. Thesigning of this MoU is therefore seen as a means of strengthening therelationship not only between JBIC and ADNOC but also between Japan andthe UAE.