Japan’s Inpex and the Abu Dhabi National Oil Company (ADNOC) have agreed in principle to extend the joint development of the Satah and Umm Al Dalkh oil fields offshore the UAE capital of Abu Dhabi.
Inpex is engaged in the development and production of crude oil in Abu Dhabi through its wholly-owned subsidiary Japan Oil Development Co. (JODCO). Based on the agreement in principle, ADNOC and Inpex will discuss new detailed terms on which the joint development of Satah and Umm Al Dalkh oil fields will be extended until December 31, 2042.
The company said on Monday that, subject to reaching the deal, it would be granted an additional 28 percent participating interest in the Umm Al Dalkh oil field, bringing its total participating interest in the oil field to 40 percent.
The Satah and Umm Al Dalkh oil fields, located Abu Dhabi and operated by the Zakum Development Company (ZADCO), are producing approximately 20,000 and 15,000 barrels per day, respectively.
Inpex holds a 40 percent interest in the Satah oil field and a 12 percent interest in the Umm Al Dalkh oil field. The current joint development agreements for the Satah and Umm Al Dalkh oil fields are scheduled to expire on 8 March 2018.
Inpex added that both oil fields have abundant reserves and have been stable producers of oil for many years based on a strong partnership between the company and ADNOC. The company expects this kind of stable production to continue over the long term.