Abu Dhabi National Oil Company (Adnoc) has signed a memorandum of understanding (MoU) with Japan, its second largest market for crude and refined products, to expand co-operation between their energy sectors.

“The long-term energy partnership between Japan and the UAE is one that goes back to before the establishment of Adnoc, with Japanese companies playing, and continuing to play, an important role in the development and expansion of the country’s oil and gas industry," said Adnoc group chief executive Sultan al-Jaber.

The national oil company had announced in July that it would open up some of its assets to international partnerships as part of a new strategy. Adnoc had said it was in talks with Chinese and Japanese firms following Al-Jaber's visit to both countries. Adnoc is seeking international investment in its upstream, mid- and downstream segments.

Japan Oil Development Company (Jodco) currently operates 40 per cent of Adnoc subsidiary Zakum Development Company's Satah concession, 12 per cent of Umm al-Dalkh and 12 per cent of Upper Zakum. Jodco also holds a 12 per cent stake in Abu Dhabi Marine Operating Company, five per cent of Abu Dhabi Company for Onshore Petroleum Operations, while Japanese firm Mitsui has a 15 per cent share in the Adgas joint venture.

"This memorandum of co-operation marks a new phase in Japan’s long and successful relationship with Adnoc, an important and valued energy supplier. In common with Adnoc, we believe the changing oil and gas market dynamics require a smart response, one based on long-term, value-add partnerships that create new opportunities and drive economic growth," said Japanese economy minister Hiroshige Seko.

Last year, Adnoc exported 513,000 barrels a day of oil to Japan - around a quarter of the country's imports.