Abu Dhabi: A top executive of the Inpex group termed the five per cent concession agreement signed with Abu Dhabi government last month as “huge” and said that having access to high quality Abu Dhabi crude will benefit Japan immensely.
Speaking to Gulf News in an exclusive interview Yosuke Ueda, director and general manager of Japan Oil Development Company Limited (Jodco) which is part of the Inpex group said they were longing to be part of the prestigious onshore concessions.
“We feel privileged and honoured. It is huge. We’ve been here for more than forty years in the offshore field. This is the first time we will be developing onshore oilfields in Abu Dhabi,” said Ueda.
Inpex corporation is the first Asian company to be awarded the contract after decades long concession agreement with various Western companies expired in January last year.
French oil major Total was awarded a 10 per cent stake to develop oilfields in Abu Dhabi in January and South Korea’s GS Energy was given 3 per cent stake
A number of international companies like Royal Dutch Shell, BP are bidding for the new contracts being awarded by Abu Dhabi National Oil Company (Adnoc).
Ueda did not disclose about the value of the deal saying it is “confidential.” However media reports put the total value of the deal at $1.1 billion (Dh4.04 billion).
“The Japanese government supported us in the bidding. We really appreciate that.”
“The Japanese government is encouraging self-developed oil through participation in equities. We’ve been importing about four million barrels of oil per day. We are buying most of it from the international market while 20 per cent of oil is redeemed from equity.”
“It is the government’s policy to increase the oil produced by Japanese companies so that we can decrease the dependence on imported oil.”
On Abu Dhabi crude Murban, he said it is very light and low in sulphur content. “The quality of oil is high and has a good market value. Having access to that oil is very important for us.”
From the security point of view, Abu Dhabi crude is very important, he said. “This country is very secure. This is a gigantic field and strategically important as we can lift the oil through Fujairah pipeline bypassing the Strait of Hormuz as an option.”
On falling oil prices, he said the trend is benefiting Japan but as an oil producing company it has not been good news.
“It had an adverse impact as oil prices dropped from more than $100 per barrel around $65. Despite this, we are committed to projects and continue to invest in the region. We did not resort to redundancies or slash our investments in the region.”
He said the company suffered losses to the tune of more than $300 million dollars due to falling oil prices.
“Oil prices are out of our control. We just do whatever we can do. We have made a commitment and we try to meet Abu Dhabi government expectations and fulfil our obligations.”
The company is keen to renew its contract in offshore concession which will expire in 2018, Ueda said.
“We want to continue to stay in this concession. We understand it is Abu Dhabi government’s discretion but we would like to stay.”
Yosuke Ueda has been working with Jodco, anInpex group companyfor more than thirty years and had been in Abu Dhabi since nineteen years handling various projects.
Japan imports about four million barrels of oil every day and Abu Dhabi accounts for more than 20 per cent.
Inpex Corporation is involved in Abu Dhabi for more than forty years developing various oilfields including Umm Shaif, Lower Zakum, Umm Lulu, Nasr, Upper Zakum, Umm Al Dalkh, Satah and Abu Al Bukoosh.
