Agreement further strengthens the economic relationship between the UAE and Japan, says ADNOC CEO
Abu Dhabi National Oil Company (ADNOC) has signed an agreement appointing JODCO Lower Zakum Limited, a wholly-owned subsidiary of Japan’s INPEX Corporation, as the asset leader for Abu Dhabi’s Lower Zakum concession area.
The agreement was announced on the second day of a visit to the UAE by Shinzo Abe, Japan’s Prime Minister, and was signed by Dr Sultan Ahmed Al Jaber, ADNOC Group CEO, and Toshiaki Kitamura, president and CEO of INPEX.
In February, INPEX was awarded 10 percent interest in Abu Dhabi’s offshore Lower Zakum concession. At the same time the company’s stakes in Abu Dhabi’s Satah and Umm Al Dalkh concession were extended for 25 years. INPEX also maintained its 40 percent stake in Satah and increased its Umm Al Dalkh share from 12 percent to 40 percent.
Al Jaber said: “At ADNOC, we place great importance on our strategic partnership with INPEX. This agreement further strengthens the economic relationship between the UAE and Japan, which is founded on the established and mutually beneficial partnerships in the energy sector.
“As a long-standing shareholder in both Lower Zakum and Upper Zakum, INPEX is in a unique position to leverage synergies between both concessions, including the utilization and optimization of infrastructure, to enhance operational efficiencies, enable substantial cost savings, and create greater value for the benefit of both partners.”
As asset leader, JODCO will lead the development plans to achieve the concession objectives, including building up and sustaining production targets, achieving agreed recovery rates and cost optimization targets.
Kitamura said: “INPEX will devote its human and technical resources to achieving production targets, deploying enhanced oil recovery technology most suitable for Lower Zakum, reducing development and production costs and supporting transfer of technical knowledge.
“INPEX views Abu Dhabi as one of its core business areas, and will continue to strive to strengthen its oil development activities and contribution efforts in Abu Dhabi, as well as help further deepen the cordial relations between UAE and Japan.”
Lower Zakum is one of three new separate concession areas that make up the former ADMA offshore concession, namely Lower Zakum, Umm Shaif and Nasr and Satah Al Razboot (SARB) and Umm Lulu.
The restructuring of concessions is aimed at maximising commercial value, broadening the partner base, expanding technical expertise, and enabling greater market access.
Other international shareholders in the Lower Zakum concession area are the China National Petroleum Corporation, an Indian consortium, led by ONGC Videsh, Italy’s ENI and France’s Total. ADNOC retains a majority 60 percent stake in the concession.For all the latest energy and oil news from the UAE and Gulf countries, follow us on Twitter and Linkedin, like us on Facebook and subscribe to our YouTube page, which is updated daily.