TOKYO - Japan has begun replenishing its national oil reserves following the release of approximately 90 million barrels in response to worsening tensions in the Middle East, with trading house Mitsui & Co. winning the first procurement contract for 2 million barrels of crude oil from the United Arab Emirates, expected to arrive in November.
The purchase marks Japan's first replenishment of its strategic petroleum reserves since attacks on Iran in February triggered a deterioration in the Middle East security situation and prompted the government to release emergency oil supplies beginning in March.
The Japan Organization for Metals and Energy Security (JOGMEC), an independent administrative agency responsible for managing the country's strategic petroleum reserves, conducted the first round of competitive bidding in September.
According to government officials, major Japanese trading company Mitsui & Co. secured the contract to procure 2 million barrels of UAE-produced crude oil for the national stockpile.
The shipment, equivalent to approximately one day's domestic oil consumption in Japan, is scheduled to arrive in November and will be transferred to the Shibushi National Petroleum Stockpiling Base in Kagoshima Prefecture.
The government has released approximately 90 million barrels from its national reserves since March to stabilize oil supplies following the escalation of tensions in the Middle East. The latest purchase represents the first step toward rebuilding those depleted reserves.
Funding for the procurement will come from profits generated through the earlier sale of oil from the national stockpile, allowing the government to finance the replenishment using proceeds from the emergency releases.
The initial purchase accounts for roughly 2.2% of the approximately 90 million barrels released since March, indicating that rebuilding Japan's strategic reserves will require further procurement if the government intends to replace the full amount withdrawn.
The decision to begin replenishing the reserves marks a shift from emergency releases toward restoring Japan's energy security buffer, which serves as a safeguard against disruptions to crude oil imports, particularly those originating in the Middle East.
Source: TBS
