Abu Dhabi National Oil Company (Adnoc) has awarded the exploration rights for an onshore block in the UAE to Japanese firm Inpex following a competitive bid round.
The agreement is for a 35-year concession for Onshore Block 4, which is spread over a 6,116km² area from Abu Dhabi to the boundary with the Emirate of Dubai.
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Inpex’s wholly owned subsidiary JODCO Exploration will hold and manage the interest in the concession on behalf of the company.
Under the agreement, Inpex will have the rights to explore and appraise oil and gas opportunities in the onshore block.
The company is entitled to own a 100% stake in the exploration phase. During this phase, Inpex will invest up to AED646m ($176m) and have the right to develop and produce any commercial discoveries.
The agreement also provides Adnoc with an option to retain a 60% interest in the production phase of the concession.
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By GlobalDataAdnoc Group CEO Dr Sultan Ahmed Al Jaber said: “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.
“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 comprises two existing undeveloped oil and gas fields, namely Ramhan and Hudairiat.
Inpex will undertake field appraisals and provide financial and technical support to Adnoc’s megaseismic survey within the block area.
The block is located near the onshore oil producing fields of Al Dabb’iya and Rumaitha, as well as the Umm Al Dalkh offshore field.
Inpex president and CEO Takayuki Ueda said: “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.”
