Adnoc, Japan’s Inpex sign $600mn concession deal

ABU DHABI / WAM

The Abu Dhabi National Oil Company (Adnoc) signed an agreement with Japan’s INPEX Corporation awarding the company a 10 percent 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 March 9 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 percent to 40 percent.
INPEX has contributed a participation fee of as much as AED2.2 billion ($600 million) 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 AED920 million ($250 million) to extend its interests in the Satah and Umm Al Dalkh concession. INPEX joins the ONGC Videsh-led Indian consort-
ium 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 as many as 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.