TOKYO/ABU DHABI, April 27 (Reuters) – Japan's Inpex Corp became the first Asian oil company to get a stake in a new 40-year onshore oil concession in Abu Dhabi, joining France's Total in developing the United Arab Emirates' (UAE) biggest oilfields.
Nine Asian and Western companies bid for stakes in the Abu Dhabi Company for Onshore Oil Operations (ADCO) concession after a deal with the Western majors dating back to the 1970s expired in January 2014.
Abu Dhabi National Oil Company (ADNOC) said on Monday it had granted Inpex a 5 percent stake in the new concession.
The fields produce 1.6 million barrels per day (bpd) and output is expected to rise to 1.8 million from 2017.
Total became the first oil major to renew the concession, putting peers under pressure to improve terms after the local partner said the French firm made the best offer.
Last week, ADNOC's director general said there was no deadline for awarding further stakes in the concession, suggesting Abu Dhabi was in no rush to make a decision about other bidders in the tender.
The Inpex concession gives Japan, which imports almost all of its oil and is the fourth-biggest importer, the ability to procure oil without passing through the chokepoint of the Strait of Hormuz at the entrance to the Persian Gulf, Minister of Economy, Trade and Industry Yoichi Miyazawa told reporters.
View Full Article
Copyright 2017 Thomson Reuters. Click for Restrictions.
WHAT DO YOU THINK?
Click on the button below to add a comment.
Generated by readers, the comments included herein do not reflect the views and opinions of Rigzone. All comments are subject to editorial review. Off-topic, inappropriate or insulting comments will be removed.
Most Popular Articles
From the Career Center
Jobs that may interest you