Page 9 - MEOG Week 42

MEOG FINANCE & INVESTMENT MEOG

INPEX to fund Emirati

expansion with bank support

UAE JAPAN’S Inpex Corp. has agreed $1bn of finance upstream sector since the 1970s, long before
with several banks to fund the development of ADNOC began enlisting NOCs from other
several onshore and offshore projects in Abu key Asian consuming countries. The depth and
Dhabi. sophistication of such involvement was marked
Of the total, the state-affiliated Japan Bank for in April 2018 when Inpex was named “asset
International Co-operation (JBIC) will provide leader” in Lower Zakum, one of the emirate’s
$650mn, while the remaining $350mn will be stalwart producers at 300,000 barrels per day
co-financed by private banks. (bpd).
The funds will be provided to Inpex’s wholly As the Tokyo-based firm said at the time,
owned subsidiary Japan Oil Development Co. the designation was “the first instance that a
(JODCO) subsidiary, which holds the parent company other than an ‘oil major’ is appointed
firm’s concessions in the UAE. These comprise as asset leader for a giant offshore field in Abu
a 5% stake in the ADNOC Onshore concession, Dhabi”. This was deemed to have been “enabled
12% in Upper Zakum, 10% in Lower Zakum, by Inpex’s technical contributions to oil develop-
40% in Satah, 40% in Umm Al-Dalkh and 100% ment in the UAE”.
exploration rights to the new 6,116-square km State-backed Japanese entities have recently
Block 4, which was awarded in early 2019. The been ramping up their support for the country’s
onshore Block 4 contains two known, undevel- energy sector firms. The Japan International
oped fields – Ramhan and Hudairiat. Cooperation Agency (JICA) provided a $1bn
JODCO will spend around $300mn on the to JGC for the expansion of refining facilities
development of the offshore Satah and Umm around the existing 210,000 bpd Shuaiba refin-
al-Dalkh and Upper Zakum assets, with $105mn ery outside Basra in southern Iraq, with JGC
to be spent on Lower Zakum, while $245mn has winning a lump sum engineering, procurement,
been earmarked for onshore field development. construction and commissioning (EPCC) con-
JBIC has a history of funding Inpex’s pro- tract from Baghdad.
jects in the UAE, having previously issued loans Meanwhile, in September, the Institute of
of $150mn for the 25-year renewal of the Satah Energy Economics Japan (IEEJ) announced the
and Umm al-Dalkh concessions, $360mn for departure to Japan of a 40-tonne shipment of
the acquisition of the stake in Lower Zakum blue ammonia generated by Saudi Aramco with
and $556mn to acquire the stake in ADNOC the support of Saudi Arabian Basic Industries
Onshore. Corp. (SABIC) as the entities seek to develop a
Japan has been a stakeholder in Abu Dhabi’s global blue ammonia/hydrogen supply chain.™

Week 42 21•October•2020 www. NEWSBASE .com P9