Japan offers oil storage facilities in Okinawa for use by Saudi Arabia

Prime Minister Shinzo Abe proposed a plan to Saudi Arabia on Saturday night to let the country use part of the state-owned oil storage tanks in Okinawa Prefecture in exchange for a preferential right to purchase the oil reserves there in case of emergency, Japanese officials said.

The proposal was extended during Abe's meeting with Saudi Arabian King Abdullah, who agreed that the largest oil supplier to Japan will examine the plan through the ministerial-level and working-level talks, the officials said.

On the first leg of his five-nation tour to the Middle East, Abe arrived in the Saudi Arabian capital earlier in the day and attended a banquet hosted by Crown Prince Sultan bin Abdul Aziz.

The oil storage plan is designed to deepen Japan's interdependent relationship with Saudi Arabia and ensure a stable oil supply, the Japanese officials said.

It is hoped to be useful for Saudi Arabia because it would enables the country to set a new commercial foothold in Asia.

At present, Tokyo uses the oil storage facilities on the Henza Island of Okinawa Prefecture, for government use, stockpiling about 5.25 million kiloliters of oil, or an amount equivalent to 10 days of the nation's consumption.

Under the proposed deal, the officials said, Tokyo wants to offer part of the oil tanks for Saudi's use, while asking for the rights to purchase the oil on a priority basis in times of emergency.

Abe and King Abdullah also discussed a range of bilateral and Japan-Middle East relations as well as multilateral issues during the meeting, the officials added.

The leaders then signed a joint statement in which the two countries agree to strengthen political dialogues through high-level talks including those between their foreign ministers.

The joint statement spelled out the creation of a joint task force comprising of representatives from the two governments and private sectors to expand investment, particularly in the fields of automotive, electronics and construction materials.

Abe arrived in the United Arab Emirates' capital Abu Dhabi on Sunday for the meeting with President Khalifa bin Zayed Al Nahyan.

Abe's eight-day trip to Saudi Arabia, the United Emirates, Kuwait, Qatar and Egypt marks his first visit to the oil-rich Middle East since assuming office in September. It is also the first time for a Japanese premier to visit Kuwait.