The Japan Bank for International Cooperation (JBIC) is offering $378 m loan to Abu Dhabi Oil to develop Hail oilfield in the United Arab Emirates (UAE).

The loan is cofinanced with Mizuho Bank, The Bank of Tokyo-Mitsubishi UFJ and Sumitomo Mitsui Banking Corporation, taking the overall cofinancing amount to $630m.

The loan amount is estimated to cover 75% of the total estimated development cost of the field, The National reported.

Abu Dhabi Oil, which is 64% owned by a subsidiary of Japanese refiner Cosmo Oil, acquired the concession of the Hail oilfield from the Supreme Petroleum Council (SPC) of Abu Dhabi in 2011.

The Hail field is expected to produce 20,000 barrels per day (bpd) at peak.

Besides, Abu Dhabi Oil holds concession rights of Mubarraz, Umm Al-Anbar, and Neewat Al-Ghalan oilfields located about 50 kilometres west of Abu Dhabi city.

 JBIC loan is aimed at contributing to the stable supply of crude oil to Japan and is in line with the Japanese government’s energy resource policy.

In its “Basic Energy Plan,” in June 2010, the Japanese government set a goal of increasing its self-development ratio of oil and natural gas to 40% or more by 2030.

JBIC said in a statement: “As Japan's policy-based financial institution, JBIC will continue to actively support the development and acquisition of energy resources by Japanese companies and financially assist the securing of steady energy supply for Japan, as well as the maintaining and increasing of self-development ratio, by drawing on its various financial facilities and schemes for structuring projects, and performing its risk-assuming function.”