Abu Dhabi National Oil Company (Adnoc) has signed a 40-year agreement with Japan’s Inpex Corporation for a 10 per cent interest in Abu Dhabi’s offshore Lower Zakum concession.

Inpex has contributed a participation fee of AED2.2bn ($600m) to enter Lower Zakum, which will be managed by Adnoc subsidiary Adnoc Offshore on behalf of all concession partners.

A wholly owned Inpex subsidiary, Jodco Lower Zakum, will hold and manage the interest in the concession on behalf of Inpex, Adnoc says in a statement.

The agreement comes into effect on 9 March.

Adnoc also announced that Inpex’s stakes in Abu Dhabi’s Satah and Umm al-Dalkh concessions have been extended for 25 years.

It is understood Inpex will maintain its 40 per cent stake in Satah and increase its Umm al-Dalkh share from 12 per cent to 40 per cent. Inpex paid AED920m to extend its interests in the Satah and Umm al-Dalkh concessions.

Inpex joins the ONGC Videsh-led Indian consortium as a partner in the Lower Zakum concession.

Lower Zakum is one of three new separate concession areas that make up the former Adma offshore concession, which is being split to maximise commercial value, broaden the partner base, expand technical expertise and enable greater market access.

As well as its stake in the Lower Zakum concession, Inpex has a 12 per cent stake in Adnoc’s Upper Zakum concession. In November, the Upper Zakum concession partners announced an agreement to increase production capacity to 1 million barrels a day by 2024. In 2015, Inpex acquired a 5 per cent participating interest in the Adco Onshore concession, now operated by Adnoc Onshore.

MEED understands Adnoc is finalising opportunities with potential partners for the remaining 20 per cent of the available 40 per cent stake in the Lower Zakum offshore concession, earmarked for foreign oil and gas companies.

The current Adma offshore concession, which expires on 8 March 2018, will be split into three separate offshore concessions operated by Adnoc Offshore. Offshore concessions awarded, or to be awarded, are: