Saudi Aramco and Japan Oil, Gas and Metals National Corporation (JOGMEC) signed a contract for the Saudi Kingdom to store its crude in Japan.
The agreement is based on the basic agreement between the Agency for Natural Resources and Energy (ANRE) of Japan and Saudi Aramco signed in June.
Under the deal, the Saudi oil giant will lease tanks in Okinawa with a capacity of 600,000 kiloliters (3.77 million barrels) from JOGMEC for three years starting December to store crude oil.
JOGMEC said in a statement that the first crude carrying VLCC is scheduled to be at Okinawa around February next year and will hold approximately 300,000 Kilolitres (2.56 million barrels).
The project is expected to contribute to the energy stability and security of Japan and further strengthen the relationship between the two countries as it will see Japan receive a priority supply of crude in an emergency. Saudi Arabia is one of the major crude oil suppliers to Japan accounting for an estimated 30% of total imports.
