Inpex to enter Lower Zakum

Inpex has agreed to buy a 10% stake in the Lower Zakum concession offshore the UAE, Abu Dhabi’s NOC ADNOC said on Monday.

The Japanese company has paid USD 600 million to enter the concession, as well as an additional USD 250 million to extend its contract at the Satah and Umm Al Dalkh concession by a further 25 years and to increase its stake at Umm Al Dalkh to 40%. Inpex also holds a 12% interest in the Upper Zakum field.

“This agreement ensures Inpex continues to enjoy access to significant, competitive and reliable resources that we understand very well,” said Toshiaki Kitamura, Inpex’s president and CEO, in a statement. “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.”

The news came weeks after ADNOC agreed to sell a 10% stake in Lower Zakum to a consortium led by India’s ONGC.