ADNOC extends Japan’s oil concessions for another 25 years

An agreement has been reached between Japan andAbu Dhabi National Oil Co. (ADNOC), the state-owned oil company of the United Arab Emirates (UAE), to extend the oil concessions of Inpex, a Japanese oil company, on two small oil fields for another 25 years.

Japan’s minister of economy, trade and industry, Hiroshige Seko, recently met with Sultan Ahmed al-Jaber, CEO of ADNOC, and they have reached a basic agreement on the extension.

Inpex’s concessions on the Umm al-Dalkh and Satah fields off the coast of Abu Dhabi were originally set to expire in March 2018.

Daily production at these two fields totals 35,000 barrels. Inpex’s 40% stake amounts to 14,000 barrels of oil. ADNOC holds the remaining 60% stake in the fields.

The capital of the United Arab Emirates appears to have granted the 25-year extension in consideration of Japan’s contributions to the emirate in health care and other areas. For Japan, Abu Dhabi is its second-largest supplier of crude oil after Saudi Arabia.