Home Economy Abu Dhabi awards Japan’s INPEX stake in oil concession

Abu Dhabi awards Japan’s INPEX stake in oil concession

Abu Dhabi's Adnoc Adnoc awarded Japan's INPEX a 10 percent stake in an offshore oil concession, in a deal worth $600 million. (Reuters)

Abu Dhabi’s state energy company ADNOC said Monday it had awarded Japan’s INPEX a 10 percent stake in an offshore oil concession, in a deal worth $600 million.

The new concession, at the offshore Lower Zakum oil field, is for a duration of 40 years, ADNOC said in a statement.

The company also said it had extended INPEX’s 40 percent stakes in Abu Dhabi’s Satah and Umm Al-Dalkh concessions for another 25 years.

The move comes two weeks after ADNOC awarded a state-owned Indian consortium, led by ONGC Videsh, a similar stake in Lower Zakum, also worth $600 million.

ADNOC last week awarded Spanish Cepsa, wholly owned by Abu Dhabi’s Mubadala Investment Company, a 20 percent share in a concession of two offshore oil fields for $1.5 billion.

All three concessions cover 40-year periods and aim to double output from the offshore oilfields to over 1.125 million barrels per day.

ADNOC Offshore, a subsidiary of ADNOC, will retain 60 percent in the three concessions while the remaining stakes will be awarded to different companies, ADNOC said in a statement.

Abu Dhabi, where most of the oil reserves of the United Arab Emirates are located, has begun to award new oil concessions as the old ones have either expired or will run out early next month.

It has already granted concessions to ExxonMobil, Total, BP, Shell and China’s CNPC, among others.

The new concessions have been offered at nearly half the duration of the old concessions, with ADNOC taking majority stake in the projects.

ADNOC aims to increase Abu Dhabi oil production capacity from 3.2 million barrels per day to 3.5 million by the end of 2018.

More new concessions are expected to be awarded in the next two weeks.

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