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Wed 12 Jan 2011 09:12 AM

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ADNOC close to giving Cosmo oil stake extension

ADNOC's CEO tells Japanese minister he expects a 30-year extension

ADNOC close to giving Cosmo oil stake extension
OIL COMPANY: The UAE  is Cosmos biggest crude supplier and the second-biggest supplier to Japan after Saudi Arabia (ITP Images)

Abu Dhabi National Oil Co (ADNOC)

looks set to extend the stakes a subsidiary of Japan's Cosmo Oil

holds in three oilfields, a Japanese trade ministry

official said on Wednesday.

ADNOC's CEO Yousef Omair bin Yousef said in a Tuesday

meeting in Abu Dhabi with Japan trade minister Akihiro Ohata that

he expected a 30-year extension, the ministry official said.

The UAE  is Cosmo's biggest crude supplier

and the second-biggest supplier to Japan after Saudi Arabia.

The Cosmo subsidiary, Abu Dhabi Oil Co, has been looking for

a 30-year extension after its current contracts expire in 2012.

ADNOC's head also said that Abu Dhabi Oil Co would be granted

a new concession area, as expected, the official said.

To back up Japanese companies' oil production in the Emirate,

state-run Japan Bank for International Cooperation (JBIC) in

November granted ADNOC a $3 billion loan co-financed with five

banks.

Ohata is also visiting Saudi Arabia and Iraq on his current

trip.

At a joint news conference on Monday, Iraq's Deputy Prime

Minister for Energy Affairs Hussain al-Shahristani said

pre-qualified Japanese companies would be invited to bid this

year to develop the giant Nassiriya oilfield.

The two governments also confirmed they would prepare a

feasibility study on the construction of a large-scale thermal

power station in southern Iraq.

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