Ministry of Economy, Trade and Industry
Font Size Change
S
M
L

Agency for Natural Resources and EnergyJapanese company acquired a participating interest in the ADCO Onshore Concession in Abu Dhabi

On April 27, 2015, INPEX CORPORATION (INPEX) signed a contract for the acquisition of a 5% participating interest in the ADCO Onshore Concession in Abu Dhabi, a 40-year agreement with the Supreme Petroleum Council of the Emirate of Abu Dhabi and the Abu Dhabi National Oil Company (ADNOC) of the United Arab Emirates (UAE).

1. The acquisition of a participating interest in the ADCO Onshore Concession in Abu Dhabi

On April 27, 2015, INPEX signed a contract on the acquisition of a 5% participating interest in the ADCO Onshore Concession in Abu Dhabi, a 40-year agreement with the Supreme Petroleum Council of the Emirate of Abu Dhabi and ADNOC.

The ADCO Onshore Concession in Abu Dhabi is one of the world’s largest deposits of oil, currently producing 1.6 million barrels per day, and it is estimated that it will produce 1.8 million barrels per day in 2017. This is the first time that a Japanese company has participated in development and production at an oil field of such a large scale.

The participation of INPEX represents the second participating interest acquisition, following Total, a French company. INPEX is the first Asian participating company since the oilfield began assigning participating interests in 1939.

2. The significance of the acquisition of the interest

This is Japan's first full-fledged acquisition of participating interest since 2009, leading to an approximate 15% increase in the quantity of crude oil under independent development by Japan. In addition, the crude oil from this oilfield greatly contributes to the stable supply of oil to Japan, given that the oil is now expected to be shipped by a route that avoids the Straits of Hormuz.

3. Past efforts

The Government of Japan has enhanced efforts to cooperate with the Emirate of Abu Dhabi in a wide range of areas such as education and medical services in which the country is most interested, in addition to high-level diplomatic efforts aimed at Japan’s acquisition of a participating interest in onshore oil fields including the visits to the country by Prime Minister Shinzo Abe in May 2013 and by METI Minister Yoichi Miyazawa in January 2015. This acquisition of a participating interest in onshore oil fields has come as a result of Japanese companies’ achievements and credibility and a high appreciation of the close relationship between Japan and the Emirate of Abu Dhabi, which can be considered as significant result of resource diplomacy.

4. Future efforts

METI will continue to make solid efforts in resource diplomacy, which is essential to energy policy.

Reference

Release date

April 27, 2015

Division in Charge

Petroleum and Natural Gas Division, Natural Resources and Fuel Department, Agency for Natural Resources and Energy

Ministry of Economy, Trade and Industry
1-3-1 Kasumigaseki, Chiyoda-ku, Tokyo 100-8901, Japan Tel: +81-(0)3-3501-1511
Copyright Ministry of Economy, Trade and Industry. All Rights Reserved.