Inpex to fund Abu Dhabi oil development with JBIC loan

State-affiliated Japan Bank for International Co-operation (JBIC) will loan $650mn to Japanese upstream firm Inpex to support its onshore and offshore field developments in Abu Dhabi. The loan will be co-financed by private banks and total $1bn.

JBIC yesterday signed an agreement with Jodco, Inpex's wholly-owned subsidiary, to help its oil-field developments in Abu Dhabi. Jodoco will spend $300mn to develop offshore Satah and Umm al-Dalkh, and Upper Zakum. About $105mn will go towards the development of the offshore Lower Zakum and $245mn for the onshore development, through Inpex financial services Singapore, Inpex's Singapore-based subsidiary.

Inpex in March 2019 renewed its 40pc stake of the offshore Satah and Umm al-Dalkh concessions for 25 years and JBIC provided the $150mn loan for the concession. Inpex also acquired 10pc of the offshore Lower Zakum oil field concession for 40 years at the same time, and JBIC financed $360mn for the acquisition.

Inpex in April 2016 purchased a 5pc stake in Abu Dhabi's Adco onshore oil concession for 40 years. JBIC provided a loan of $566mn.

JBIC aims to financially support Japanese companies' oil and gas field developments to increase those output to secure the country's energy resources.

By Reina Maeda