Abu Dhabi: The Abu Dhabi National Oil Company (Adnoc) on Sunday signed an agreement awarding the exploration rights for Abu Dhabi Onshore Block 4 to Japan’s Inpex Corporation.
A wholly-owned Inpex subsidiary, Jodco Exploration Limited will hold and manage the interest in the concession on behalf of Inpex, Adnoc said in a statement.
The award has been endorsed by Abu Dhabi’s Supreme Petroleum Council (SPC) and represents the deep commercial and economic relationship, as well as long-standing energy partnership between the UAE and Japan.
Inpex will hold a 100 per cent stake in the exploration phase, investing up to Dh646 million ($176 million), including a participation fee, to explore for and appraise oil and gas opportunities in the block that covers an onshore area of 6,116 square kilometres from Abu Dhabi to the boundary with Dubai.
Following exploration activities and appraisal of the existing discoveries, Inpex will have the opportunity to develop and produce any commercial discoveries. Adnoc has the option to hold a 60 per cent stake in the production phase of the concession.
The agreement, with a term of 35 years, was signed by Dr Sultan Ahmad Al Jaber, UAE Minister of State and Adnoc Group CEO, and Takayuki Ueda, president and CEO of Inpex Corporation.
“For over 40 years, Inpex, along with its subsidiary Jodco, has been a strategic partner to Abu Dhabi and Adnoc. Today’s agreement, following a competitive bid round, 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,” Dr Al Jaber said.