Japanese oil and gas developer Inpex Corp is in final adjustments to obtain a five per cent stake in a new concession to help operate the United Arab Emirates’ biggest oilfields for $1.1 billion, public broadcaster NHK said on Monday.

Inpex was one of 11 firms that bid for stakes in the concession covering Abu Dhabi’s 15 principal onshore fields that produce about 1.6 million b/d, NHK reported without citing sources.

An Inpex spokesman declined to comment on the report.

After its previous deal with oil majors expired last year, state-run Abu Dhabi National Oil Company (ADNOC) took 100% of the concession as political leaders in Abu Dhabi weighed up whether to bring in Asian firms or stick with old partners, industry and diplomatic sources said.

In January, Total became the first company to renew its concession, with a 10% stake, putting peers like BP and Royal Dutch Shell under pressure to improve terms after the French oil major submitted the best bid offer, according to industry sources.

Inpex did not have a previous stake in this concession, where production is expected to reach 1.8 million b/d from 2017.

Senior Japanese government officials have been working to strengthen the country’s relationship with the United Arab Emirates in energy and other areas.

Trade Minister Yoichi Miyazawa urged ADNOC’s director general Abdullah Nasser al-Suwaidi to renew oil concessions held by all Japanese companies during his January visit.

Source: Gulf Business