Abu Dhabi National Oil Co. (ADNOC) and Japan’s Inpex Corp. (Inpex) have moved forward to the production phase of the emirate’s Onshore Block 4 concession, which is estimated to hold around 1bn barrels of oil equivalent.

The move underscores the UAE’s strategy to accelerate the development of its hydrocarbon resources and bolster long-term supply security for key Asian partners.

ADNOC will hold a majority 60% stake in the production concession for Onshore Block 4, the emirate’s Supreme Council for Financial and Economic Affairs has decreed. The remaining 40% will be held by JODCO Exploration Ltd (JEL), a subsidiary of Inpex, Japan’s largest oil and gas explorer.

This transition to production finalises a journey that began in 2018 with Abu Dhabi’s first-ever competitive exploration bidding round. Inpex was awarded the sole exploration rights for the block in March 2019, committing up to $176mn for the initial phase. The agreement, which has a total duration of 35 years, saw ADNOC retain the right to a majority stake upon a commercial discovery.

That discovery was announced in late 2021 after JEL, acting as operator, drilled a successful exploration well. The find confirmed multiple commercially viable reservoirs of conventional oil, condensate, and natural gas.

The success of the exploration programme was attributed to new geological intelligence gathered from one of the world’s largest 3D seismic surveys. The mega-survey, conducted by a subsidiary of the China National Petroleum Corp, has been instrumental in de-risking exploration across the emirate and identifying promising new deposits.

Onshore Block 4 spans a substantial 6,116 square km coastal area adjacent to Abu Dhabi City, near existing mature onshore and offshore fields. The concession’s development will be a joint endeavour, leveraging Japanese technology and investment to bring the new resources to market.

The venture is heavily backed by the Japanese state, with the Japan Organization for Metals and Energy Security (JOGMEC) holding a 49% share in the JODCO subsidiary. For Tokyo, the project represents a crucial step in securing stable, long-term energy supplies from a reliable partner in the Middle East, reinforcing a decades-long strategic relationship with Abu Dhabi.