Japanese Company Earns Oil Development Deal in UAE

Japan’s Inpex Corp. on Monday won a stake in the development of major oil fields in the oil-rich emirate of Abu Dhabi, deepening the Asian nation’s ties to the United Arab Emirates federation.

The Abu Dhabi National Oil Co. said the deal gives Inpex’s Japan Oil Development Co. Ltd. Division a 5-percent stake in the onshore concession operated by the Abu Dhabi Company for Onshore Petroleum Operations, also known as ADCO.

The agreement, which is valid from the start of this year, is good for 40 years. Neither company provided financial terms for the deal.

Inpex President and CEO Toshiaki Kitamura said the company’s winning bid likely reflects its track record in Abu Dhabi over many years. The company last year won a 15-year extension on its concession for the emirate’s Upper Zakum offshore oil field, which it has been developing since 1978.

“This new acquisition in Abu Dhabi … is highly significant in terms of the company’s growth strategies and also largely contributes to the long-term, stable supply of energy to Japan,” Kitamura said in a statement.

Monday’s agreement will put Inpex in partnership with French oil giant Total SA, which won rights to 10 percent of the ADCO project earlier this year. That deal followed the expiration of previous development rights involving Total and others last year.

The project includes 15 oil fields in Abu Dhabi, the capital and largest of the seven emirates in the UAE and the holder of the bulk of the OPEC nation’s oil wealth. Eleven of the fields are currently in operation, while the rest are undeveloped.

via Mainichi

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Alfonso Esparza

Alfonso Esparza

Senior Currency Analyst at Market Pulse
Alfonso Esparza specializes in macro forex strategies for North American and major currency pairs. Upon joining OANDA in 2007, Alfonso Esparza established the MarketPulseFX blog and he has since written extensively about central banks and global economic and political trends. Alfonso has also worked as a professional currency trader focused on North America and emerging markets. He has been published by The MarketWatch, Reuters, the Wall Street Journal and The Globe and Mail, and he also appears regularly as a guest commentator on networks including Bloomberg and BNN. He holds a finance degree from the Monterrey Institute of Technology and Higher Education (ITESM) and an MBA with a specialization on financial engineering and marketing from the University of Toronto.
Alfonso Esparza