UAE’s ADNOC awards Japan’s INPEX 10 pct stake in new oil offshore concession

Abu Dhabi National Oil Co’s (ADNOC) signed on Monday a new 40-year agreement with INPEX awarding the Japanese oil company a 10-percent stake in its Lower Zakum concession, a deal set to help the UAE expand its foothold in Asia.

Separately, INPEX’s stakes in Abu Dhabi’s Satah and Umm Al Dalkh concession have been extended for 25 years, ADNOC and INPEX said in statements. The Japanese oil company will maintain its 40 percent stake in Satah concession and increase its Umm Al Dalkh share to 40 percent from 12 percent.

INPEX has paid a fee of 2.2 billion dirhams ($600 million) for the Lower Zakum concession, ADNOC said. INPEX has also paid 920 million dirhams to extend its share in the Satah and Umm Al Dalkh concession.

“ADNOC aims to seize new opportunities from increasing energy demand in Asia’s expanding economies,” Chief Executive Sultan al-Jaber said in a statement. “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 UAE provides Japan with 25 percent of its crude oil imports. The agreement has a term of 40 years and an effective date of March 9, ADNOC said.

INPEX becomes the second company to win a stake in the Lower Zakum offshore oil concession, after a consortium led by India’s Oil and Natural Gas Corp (ONGC) became the first to sign the pact earlier this month.

Last week, ADNOC signed an agreement with Cepsa awarding it a 20 percent stake in Abu Dhabi’s offshore SARB and Umm Lulu concession.

In August, ADNOC said it would split its ADMA-OPCO offshore concession into three areas – Lower Zakum, Umm Shaif and Nasr, and Sateh Al Razboot and Umm Lulu – with new terms to unlock greater value and increase opportunities for partnerships.

The existing ADMA-OPCO concession, in which ADNOC has a 60 percent stake that it will keep, produces around 700,000 barrels per day (bpd) of oil and is projected to have a capacity of about 1.0 million bpd by 2021.

Existing shareholders in ADMA-OPCO are BP with 14.67 percent, and Total SA with 13.33 percent. Japan Oil Development Co. (JODCO), which is owned by INPEX, had originally owned a 12 percent stake in the concession.

Source: Reuters


Create Account

Log In Your Account