Inpex Corp. is joining Total SA to develop the main onshore oil deposits in the United Arab Emirates as Abu Dhabi picks new partners for a $22 billion effort to pump crude from its largest fields.
Japan's state-backed energy explorer will take a 5 percent stake in the fields, Yoichi Miyazawa, the trade minister, said at a news conference in Tokyo Monday. The concession will give Japan access to crude from the deposits for 40 years, starting Jan. 1, 2015, Inpex and the emirate's government-owned oil producer said in an emailed statement.
"It makes sense for Abu Dhabi to name an Asian partner since more of their demand is coming from there," said Robin Mills, a Dubai-based analyst at Manaar Energy Consulting. "Inpex brings quite a lot technically, and they operate major projects." A Chinese company could be one of the next bidders awarded a stake, he said.