Japan’s largest oil explorer INPEX Corp. announced on Monday that it has acquired a 10-percent stake in the Lower Zakum concession, an oil concession in Abu Dhabi, UAE.
The acquisition is based on a 40-year contract with the Supreme Petroleum Council of the Emirate of Abu Dhabi and the Abu Dhabi National Oil Company (ADNOC) starting from March 9, the Tokyo-based company said in a press release.
With the deal, the company is hoping to secure 450,000 barrels per day (bpd) from the Lower Zakum offshore oil field located 80 km northwest of Abu Dhabi, it said.
“This agreement demonstrates INPEX’s long-term commitment to the further development of Abu Dhabi’s energy industry over the next several decades,” INPEX President and CEO Toshiaki Kitamura said.
The Japanese energy developer will also extend its holdings in Abu Dhabi’s Satah and Umm Al-Dalkh offshore oil fields by 25 years, originally set to expire next month. The two fields are expected to produce about 45,000 barrels of oil per day in total, it said. Inpex will maintain its 40 percent stake in the Satah field, while its share in the Umm Al-Dalkh oilfield will be increasing from the current 12 percent to 40 percent.
Japan relies on self-developed oilfields for 20 percent of its crude imports, or 700,000 bpd. The UAE is the second-biggest crude oil supplier for Japan after Saudi Arabia. INPEX, which has engaged in business operations in Abu Dhabi for over 40 years, is a worldwide oil and gas exploration and production company with more than 70 active projects across 20 countries, including the Middle East.
Source: Kuwait News Agency