Adnoc Awards 10% Stake To Japans Inpex

Dubai: Abu Dhabi National Oil Company (Adnoc) awarded a 10 per cent stake in an offshore concession to Japan’s Inpex Corporation. The deal comes into effect on March 9, with a tenure of 40 years.

Adnoc did not disclose the value of the stake but said in a statement issued on Monday that Inpex contributed a participation fee of Dh2.2 billion to enter the Lower Zakum concession.

The interest in the concession will be held and managed by Jodco Lower Zakum Limited, a wholly-owned Inpex subsidiary.

On top of its latest stake in Lower Zakum, Inpex’s stakes in Abu Dhabi’s Satah and Umm Al Dalkh concession have been extended for 25 years. Inpex has maintained its 40 per cent stake in Satah, and increased its Umm Al Dalkh share to 40 per cent from 12 per cent.

Inpex paid Dh920 million to extend its interests in the Satah and Umm Al Dalkh concession, Adnoc confirmed.

The Japanese company now joins an Indian consortium as a partner in the Lower Zajum concession.

Sultan Al Jaber, group chief executive officer of Adnoc and member of Abu Dhabi’s Supreme Petroleum Council, said the deal with Inpex underscores economic ties between the UAE and Japan.

“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,” he said in a statement.

Al Jaber added that Adnoc is aiming to seize opportunities from increasing energy demand in Asia’s expanding economies.