Japanese company Inpex has acquired a 10% participating interest in the Lower Zakum concession, located off the coast of Abu Dhabi in the United Arab Emirates (UAE) in a deal valued at AED2.2bn ($600m).
The interest was awarded by the Supreme Petroleum Council of the Emirate of Abu Dhabi (SPC), and is valid for a period of 40 years through to 8 March 2058.
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In addition, Inpex has concluded an agreement regarding a 25-year extension of the Satah and Umm Al Dalkh concession, which is located offshore Abu Dhabi, with the SPC and Abu Dhabi National Oil Company (Adnoc).
The move comes after an agreement was reached in principle for the extension last year.
The extension was secured at a cost of AED920m ($250m) and will allow the company to hold rights over the concession until 8 March 2043, as well as giving it an additional 28% participating interest in the Umm Al Dalkh Oil Field.
Inpex president and CEO Toshiaki Kitamura said: “This agreement ensures Inpex continues to enjoy access to significant, competitive and reliable resources that we understand very well.
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By GlobalData“The agreement results, in part, from the unwavering long-term partnership that Inpex has built and maintained with Abu Dhabi over more than 40 years, and demonstrates Inpex’s long-term commitment to the further development of Abu Dhabi’s energy industry over the next several decades.”
Through the agreements, the company will now hold a 40% participating interest in both oilfields, through its subsidiaries Japan Oil Development Company (JODCO) and JODCO Lower Zakum.
Discovered in 1963, Lower Zakum Oil Field has a total target production of around 450,000 barrels of crude oil a day.
Recently, an Indian consortium led by ONGC Videsh signed an agreement to acquire a 10% participating interest in the Lower Zakum concession.
Inpex and partner Adnoc are planning to increase the combined production capacity of Satah and Umm Al Dalkh oilfields to around 45,000bpd of oil per day.
The production capacity of the Upper Zakum Oil Field, which Inpex holds a 12% interest in, is anticipated to increase to one million barrels a day according to an announcement made last year.
