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Adnoc awards onshore concession to Japan's Inpex

Abu Dhabi - Concession agreement comes with a term of 35 years

Abu Dhabi National Oil Company (Adnoc) awarded Japan's Inpex exploration rights for Abu Dhabi Onshore Block 4, the energy giant said in a statement on Sunday.
The concession agreement, with a term of 35 years, was signed by Dr Sultan bin Ahmad Sultan Al Jaber, UAE Minister of State and Adnoc Group CEO, and Takayuki Ueda, president and CEO of Inpex.
As per the deal, Inpex will hold a 100 per cent stake in the exploration phase and invest up to Dh646 million, while Adnoc has the option to hold a 60 per cent stake in the production phase of the concession, the statement said.
The award has been endorsed by Abu Dhabi's Supreme Petroleum Council and represents the deep commercial and economic relationship as well as long-standing energy partnership between the UAE and Japan, Adnoc said.
Dr Al Jaber said the latest award 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.
"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."
A wholly-owned Inpex subsidiary, Jodco Exploration, will hold and manage the interest in the concession on behalf of Inpex.
The block covers an onshore area of 6,116 sqkm, Adnoc said, and it holds two existing undeveloped oil and gas fields, Ramhan and Hudairat.
The award is the latest of blocks offered in April 2018 in Abu Dhabi's first ever competitive exploration and licensing round.
Takayuki Ueda, president and CEO of Inpex Corp said his company looks 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 its business portfolio.
"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 and the further strengthening of a decades-old and progressive business relationship between Inpex and Adnoc," said Ueda.
The UAE provides Japan with 25 per cent of its crude oil imports.
Following the recent award of Offshore Block 1, Offshore Block 2 and Onshore Block 3 Concessions, Onshore Block 4 is the latest block awarded to an international bidder of the geographical areas that were offered for commercial bidding by Adnoc in April 2018. Studies suggest Abu Dhabi's exploration blocks hold multiple billion barrels of oil and multiple trillion cubic feet of natural gas.
In January, Adnoc awarded the Offshore 1 and Offshore 2 exploration blocks to a consortium led by Italian oil major Eni and Thailand's PTTEP. In February, it awarded Occidental Petroleum onshore Block 3.
- issacjohn@khaleejtimes.com