Japanese oil company Inpex and Abu Dhabi National Oil Company (Adnoc) have agreed in principle to extend the joint development of Satah and Umm Al Dalkh oilfields in the United Arab Emirates offshore area.
Inpex fully owned subsidiary Japan Oil Development holds the responsibility of developing and producing crude oil in Abu Dhabi.
Under the agreement, Adnoc and Inpex will negotiate new detailed terms for the joint development programme to be extended until 31 December 2042.
Furthermore, Inpex will receive additional 28% participating interest in the Umm Al Dalkh oil field that brings its total stake at this oilfield to 40%.
The Satah and Umm Al Dalkh oilfields are located offshore Abu Dhabi and produce nearly 20,000bpd and 15,000bpd respectively.
Both fields are operated by the Zakum Development Company (ZADCO). The Japanese company owns 40% participating interest in the Satah oilfield and a 12% participating interest in the Umm Al Dalkh oilfield.
The current joint development agreement between Adnoc and Inpex is scheduled to expire on 8 March next year.
Inpex claimed that both oilfields still host adequate reserves to continue stable production over the long-term.
The company has also stated its intent to strengthen its oil development activity in Abu Dhabi, which will facilitate the relationship between the city and Japan.
One of the largest exploration and production companies in Japan, Inpex is involved in nearly 70 projects across 20 countries.