Japan Extends Oil Rights in Abu Dhabi for 25 Years

Japan's Inpex Corp said on Monday it had agreed with Abu Dhabi National Oil Co. (ADNOC) to extend its holdings in the Satah and Umm Al-Dalkh offshore oilfields in Abu Dhabi by about 25 years. The deal was reached during a weekend visit by Japan Trade Minister Hiroshige Seko to the United Arab Emirates, Reuters reported. Under the basic agreement, the stakes in both fields are set to be extended until the end of 2042, from March 2018, the Tokyo-based firm said in a statement. Inpex said it would also be granted an additional 28% stake, currently owned by ADNOC, in the Umm Al-Dalkh oilfield, increasing the Japanese firm's holding to 40%. No price tag was disclosed. It holds a 40% stake in the Satah field. The Satah and Umm Al-Dalkh oil fields, operated by Zakum Development Co., produce about 20,000 barrels per day and 15,000 bpd respectively, Inpex said. “This stable production is expected to continue over the long term. Going forward, Inpex will continue to strive to strengthen its oil development activities in Abu Dhabi in which it has engaged for over 40 years,” an Inpex spokesperson said in a company statement. Inpex, expanding its business in the UAE, acquired an interest in an onshore oilfield in the country through a separate move in 2015.