Abu Dhabi to pay Exxon, Inpex more to pump oil in extended deal

Abu Dhabi will pay Exxon Mobil Corp and Inpex Corp more to pump oil at the largest field off the emirate’s coast as it extends a contract with the companies.

By (Bloomberg)

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Published: Wed 22 Jan 2014, 12:21 PM

Last updated: Tue 7 Apr 2015, 10:18 PM

Exxon and Japan’s Inpex lengthened their deal for the Upper Zakum field in the Arabian Gulf by 15 years through 2041, the Asian company said today in a statement, without giving further terms.

The companies may get about $2.85 a barrel, up from $1 a barrel, International Oil Daily reported, without citing anyone.

They sought better terms to help pay for artificial islands to support drilling equipment as output capacity of Murban-grade crude rises to 750,000 barrels a day by 2017 from about 600,000 barrels now, Ali Hassan Al Marzooqi, a senior vice-president at the field’s operating unit, said on Monday. Output may expand to one million barrels a day by 2024, he said. Inpex said the joint venture operating at Upper Zakum is considering the plan.

Exxon and Inpex are also among 11 US, European and Asian operators bidding at Abu Dhabi’s largest onshore concession.

Abu Dhabi National Oil Co. began running the fields producing about 1.5 million barrels a day of Murban-grade crude on its own after a 75-year concession with its partners ended this month, director-general Abdulla Nasser Al Suwaidi said on Monday.

Abu Dhabi is seeking investors to help it boost capacity to 3.5 million barrels of crude a day by 2017 from about 3 million now.

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