ADNOC signs agreement with Japan’s INPEX securing 10% stake in Zakum
JODCO Lower Zakum Limited intends to hold and manage the interest in the concession on behalf of INPEX.
The agreement, which comes into effect on March 9 and has a term of 40 years, was signed by H.E. Dr Sultan Ahmed Al Jaber, ADNOC Group CEO and member of Abu Dhabi’s Supreme Petroleum Council and Toshiaki Kitamura, President and Chief Executive Officer of INPEX. At the same time INPEX’s stakes in Abu Dhabi’s Satah and Umm Al Dalkh concession have been extended for 25 years. INPEX maintains its 40% stake in Satah.
INPEX has contributed a participation fee of AED 2.2 billion (US$ 600 million) to enter the Lower Zakum concession, which will be managed by ADNOC Offshore, a subsidiary of ADNOC, on behalf of all concession partners. INPEX has also paid AED 920 million ($250 million) to extend its interests in the Satah and Umm Al Dalkh concession.
H.E. Dr Al Jaber said the agreement with INPEX underscores the important strategic economic relationship between the United Arab Emirates and Japan. “For over 40 years, INPEX, along with its subsidiary JODCO, has been a strategic partner to Abu Dhabi and ADNOC. Together with our other partners, it has played an important role in the development of our offshore, and onshore, oil and gas assets. This agreement extends that long-standing partnership between one of the world’s leading oil and gas resource holding countries and the third largest global economy, and represents an attractive and strategic opportunity for both parties that will deliver mutual benefits.”
JODCO’s involvement in the oil and gas industry in Abu Dhabi started in 1973 with its participation in the Umm Shaif and the Lower Zakum fields, within the Abu Dhabi Marine Areas (ADMA) concession. JODCO joined in the development of three other offshore oil fields, the Upper Zakum field in 1977, Umm Al Dalkh in 1978 and Satah in 1980. Successful production from these three fields began during the 1980s. INPEX became the sole shareholder in JODCO in 2004.