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Sun 17 Mar 2019 02:09 PM

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Adnoc awards Japan's Inpex $176m onshore concession

The UAE provides Japan with a quarter of its crude oil imports

Adnoc awards Japan's Inpex $176m onshore concession

The Abu Dhabi National Oil Company (ADNOC) has signed an 35-year agreement awarding exploration rights for Abu Dhabi Onshore Block 4 to Japan’s Inpex Corporation, the company announced on Sunday.

A wholly owned Inpex Subsidiary, JODCO Exploration Limited, will hold and manage the interest in the concession on behalf of Inpex.

Inpex will hold a 100 percent stake in the exploration phase and will invest up to $176 million – including a participation fee – to explore for and appraise oil and gas opportunities in the block, which covers an area of 6,116 square kilometres.

Following exploration and the appraisal of existing discoveries, Inpex will be allowed to develop and produce any commercial discoveries. ADNOC has the option to hold a 60 percent stake in the production phase of the concession.

“This award to Inpex is a further demonstration of how ADNOC is utilising value-adding partnerships and new technologies to accelerate the exploration and development of Abu Dhabi’s substantial untapped hydrocarbon resources,” UAE Minister of State and ADNOC Group CEO Dr. Sultan Ahmed Al Jaber.

Dr. Al Jaber added that “it is an important part of our 2030 smart growth strategy, , helping to ensure we stay ahead of the long-term increase in demand for energy and oil and gas products, further strengthening Abu Dhabi’s position as an essential energy provider to the world.”

The concession area includes two existing undeveloped oil and gas field, Ramhan and Hudairat, both of which will be appraised by Inpex. According to ADNOC, the block’s proximity to a number of onshore and offshore oil producing fields suggests it has “very promising” potential.

“Inpex positions Abu Dhabi as one of its core business areas, and we look forward to working in close cooperation with ADNOC to help it unlock value from Abu Dhabi’s substantial hydrocarbon resources while further expanding and strengthening our own business portfolio,” Inpex president and CEO Takayuki Ueda said. “This agreement to explore and appraise oil and gas opportunities in a highly promising sector of Abu Dhabi underpins the importance of our ongoing partnership.”

The UAE provides Japan with 25 percent of its crude oil imports.

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