Adnoc signs agreement with Japan's INPEX

27/02/2018 06:01 AST

The Abu Dhabi National Oil Company, Adnoc, has signed an agreement with Japan's INPEX Corporation awarding the company a 10 per cent interest in Abu Dhabi's offshore Lower Zakum concession. A wholly-owned INPEX subsidiary, JODCO Lower Zakum Limited, will hold and manage the interest in the concession on behalf of INPEX.

The agreement, which comes into effect on 9th March and has a term of 40 years, was signed by Dr. Sultan Ahmed Al Jaber, Adnoc Group CEO and member of Abu Dhabi's Supreme Petroleum Council, and Toshiaki Kitamura, President and Chief Executive Officer of INPEX.

The INPEX's stakes in Abu Dhabi's Satah and Umm Al Dalkh concessions have been extended for 25 years. INPEX maintains its 40% stake in Satah and increases its Umm Al Dalkh share from 12 per cent to 40 per cent.

INPEX has contributed a participation fee of Dhs2.2 billion to enter the Lower Zakum concession, which will be managed by ADNOC Offshore, a subsidiary of Adnoc, on behalf of all concession partners. INPEX has also paid Dhs920 million ($250 million) to extend its interests in the Satah and Umm Al Dalkh concession.

INPEX joins the ONGC Videsh-led Indian consortium as a partner in the Lower Zakum concession.

Lower Zakum is one of three new separate concession areas that make up the former ADMA offshore concession, which is being split into three separate concession areas to maximise commercial value, broaden the partner base, expand technical expertise and enable greater market access.

Dr Al Jaber said that the agreement with INPEX confirms the important strategic economic relationship between the United Arab Emirates and Japan. "For over 40 years, INPEX, along with its subsidiary JODCO, has been a strategic partner to Abu Dhabi and ADNOC," he said. "Together with our other partners, it has played an important role in the development of our offshore and onshore oil and gas assets. This agreement extends that long-standing partnership between one of the world's leading oil and gas resource holding countries and the third largest global economy and represents an attractive and strategic opportunity for both parties that will deliver mutual benefits.

"As we accelerate delivery of our 2030 smart growth strategy, Adnoc aims to seize new opportunities from increasing energy demand in Asia's expanding economies. Once again, this agreement demonstrates the international market's confidence in Adnoc's long-term production targets and our plans to maximise value from our offshore resources."

The Gulf Today