KSA & UAE to Cooperate in Building Oil Stockpile in Asia

A framework for Saudi Arabia (KSA) and the United Arab Emirates (UAE) to cooperate with Asian countries on oil stockpiling is set to be launched, with Japan supporting the initiative through financial assistance and stockpiling expertise, the Nikkei business daily said on Monday.

The Japan-led Asia Zero-Emission Community (AZEC), a grouping of 11 countries including Southeast Asian nations, will hold a ministerial meeting in the Philippines on Thursday, where senior Saudi and UAE officials are expected to announce their intention to cooperate on oil stockpiling, the Nikkei said. The framework is expected to be included in a joint statement from the meeting, providing a basis for member countries to discuss expanding oil reserves with Middle Eastern producers, it said. Specific details and the scale of cooperation will be worked out through bilateral discussions with Saudi Arabia and the UAE possibly expanding exports to participating countries or providing priority supplies in an emergency, Nikkei said

 Japan already leases domestic private storage tanks to state-owned oil companies in countries such as Saudi Arabia under a joint stockpiling scheme, which Japanese companies can access in an emergency. Japan is expected to share the framework at a ministerial dialogue of the International Energy Forum in Saudi Arabia on October 11, the report said. A Japanese industry ministry official who spoke on condition of anonymity confirmed there will be dialogue between Saudi Arabia and the UAE and oil-consuming countries in Asia on the sidelines of the AZEC ministerial meeting, although no concrete projects will be discussed.