Abu Dhabi National Oil Company (Adnoc) in the United Arab Emirates has awarded LNG producer Inpex Corp. of Japan an exploration licence for the onshore Block 4 area as the Japanese company also advanced with LNG bunkering plans for the UAE.
The onshore Block 4 is located in a coastal area in the central part of the emirate of Abu Dhabi that includes Abu Dhabi City, and covers a surface area of around 6,116 square kilometres.
“Inpex looks forward to working in close cooperation with Adnoc to help it unlock value from Abu Dhabi’s substantial hydrocarbon resources while further expanding and strengthening our own business portfolio,” said Takayuki Ueda, President and Chief Executive Inpex.
The Japanese company recently became an LNG producer from the Ichthys liquefaction and export venture in the North Territory of Australia.
Inpex also has a stake in the Royal Dutch Shell Prelude floating LNG venture offshore northwest Australia.
The UAE is the oldest LNG producer in the Middle East from its Das Island plant offshore Abu Dhabi consisting of three Trains with nominal capacity of 5.5 million tonnes of LNG per annum.
The Japanese company added that it was working to finalize a joint venture with Adnoc on LNG bunkering in the UAE and Southeast Asia.
The logistics and services unit of Adnoc has signed the framework agreement with Inpex on developing the bunkering activities.
“We had already signed a memorandum of understanding with Adnoc about LNG bunkering, so I think there might be a lot of potential,” said Ueda.
“We would like to quickly establish a joint venture with Adnoc in this area where there is demand,” added the Inpex CEO.
The UAE is strategically located to become a major bunkering hub in the Gulf and the Arabian Peninsula.
Inpex is a long-term investor in Abu Dhabi's hydrocarbons industry, which accounts for 4.2 percent of the world's crude production.
Inpex’s subsidiary Jodco Exploration will hold and manage its interest in the onshore Block 4 as part of a 35-year concession deal.
The Japanese company will hold a 100 per cent stake during the exploration phase for the concession, which straddles Abu Dhabi’s border with Dubai.
There are two existing undeveloped oil and gas fields in the new concession area, Ramhan and Hudairiat, which both will be appraised by Inpex.
“The block’s proximity to the onshore oil producing fields of Al Dabb’iya and Rumaitha as well as the offshore field of Umm Al Dalkh, suggests it has very promising potential,” said the companies.
