Inpex’s oil concessions in Abu Dhabi extended

Abu Dhabi National Oil Company (Adnoc) and Japan’s Inpex have agreed on an extension of their joint development agreement for two offshore oilfields.

On Sunday, a basic agreement on a 25-year extension was reached by Japanese Minister of Economy, Trade and Industry Hiroshige Seko and Adnoc CEO Sultan Ahmet Al Jaber.

Inpex confirmed the deal covering the Umm Al Dalkh and Satah fields on Monday, which also gives the company an additional 28% interest in Umm Al Dalkh. This stake, previously held by ExxonMobil, raises Inpex’s interest in the field to 40%, on par with its stake in Satah. Current output from both fields is around 35,000 bopd, and the company’s shareholding amounts to about 14,000 bopd net.

“Both oilfields have abundant reserves and have stably produced oil for many years based on a strong partnership between Adnoc and Inpex … This stable production is expected to continue over the long term,” Inpex said on Monday. The original concession had been set to expire in March 2018.