Cablegate: Uae Passes Saudi Arabia to Become Japan's Top Oil

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Diana T Fritz 05/24/2007 04:58:38 PM From DB/Inbox: Search Results

Cable
Text:

UNCLASSIFIED

SIPDIS
TELEGRAM March 02, 2003

To: No Action Addressee

Action: Unknown

From: AMEMBASSY ABU DHABI (ABU DHABI 1027 - ROUTINE)

TAGS: ENRG, EPET, ETRD

Captions: None

Subject: UAE PASSES SAUDI ARABIA TO BECOME JAPAN'S TOP OIL
SUPPLIER

Ref: None
_________________________________________________________________
UNCLAS ABU DHABI 01027

SIPDIS
Laser1:
INFO: FCS
CXABU:
ACTION: ECON
INFO: P/M AMB DCM POL

DISSEMINATION: ECON
CHARGE: PROG

APPROVED: DCM: RAALBRIGHT
DRAFTED: ECON: GARANA
CLEARED: ECON: TEWILLIAMS

VZCZCADI554
RR RUEHC RUEHHH RUEHDI RHEBAAA RUCPDOC
DE RUEHAD #1027 0611325
ZNR UUUUU ZZH
R 021325Z MAR 03
FM AMEMBASSY ABU DHABI
TO RUEHC/SECSTATE WASHDC 8639
INFO RUEHHH/OPEC COLLECTIVE
RUEHDI/AMCONSUL DUBAI 2838
RHEBAAA/USDOE WASHDC
RUCPDOC/USDOC WASHDC

UNCLAS ABU DHABI 001027

SIPDIS

SENSITIVE

STATE FOR NEA/ARP, NEA/RA, EB/IEP AND INR/EC
DOE FOR INTERNATIONAL AFFAIRS:COBURN AND CALIENDO

E.O. 12958: N/A
TAGS: ENRG EPET ETRD JA TC
SUBJECT: UAE PASSES SAUDI ARABIA TO BECOME JAPAN'S TOP OIL
SUPPLIER

1. (U) According to official figures, UAE oil exports to
Japan increased 20.6% in January 2003 from December 2002.
The Emirates thus officially became the top oil exporter to
Japan, shipping 1.05 million barrels per day (bpd), slightly
larger than the 1.02 million bpd sent from Saudi Arabia.
Almost one-quarter of Japan's oil imports now come from the
UAE.

2. (SBU) Comment: The UAE actually exports more to Japan
than these figures indicate (supplies delivered as a
consequence of long-existing contracts are not reflected in
official figures, particularly as they would probably
indicate significant quota cheating by Abu Dhabi). In any
case, we believe the UAE sends about two-thirds of its
exported oil to Japan, and Japan meets close to one-third of
its imported energy needs from UAE sources. The bilateral
energy relationship is very close; most of Abu Dhabi's LNG
exports also go to Japan and the Tokyo Electric Power
Company -- TEPCO -- is an equity stakeholder in ADGAS, the
main LNG producer. Yet despite continued close ties in
energy, Japanese companies have been notably unsuccessful in
parlaying trade into project awards. Japan sells a large
number of vehicles and other durable goods in the UAE --
particularly machinery and computers -- but Japanese firms
have been noticeably absent from large prestige projects in
the utility and construction sectors. A number of our
Emirati interlocutors have remarked that while Japanese
firms come on strong in initial project presentations, they
do not follow-up as aggressively as their American, European
or Korean competitors and that -- in contrast to the past --
Japanese companies no longer offer the sort of attractive
financing packages for which they used to be famous.

WAHBA

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