Inpex Corporation said it has been granted a production concession for Onshore Block 4, located on the central coast of Abu Dhabi, United Arab Emirates, by the Supreme Financial and Economic Council of the Emirate of Abu Dhabi (SCFEA).
The Japanese energy firm has been conducting exploration and evaluation activities in the block since 2018, after winning the block in an open exploration round held by Abu Dhabi National Oil Company (ADNOC), Inpex said in a news release.
As the block’s operator, Inpex said it discovered multiple conventional oil, condensate and gas layers through the drilling of exploratory wells conducted since May 2021. Since then, the company said it has been conducting evaluation work with the aim of moving into development and starting production as soon as possible.
The block is owned 60 percent by ADNOC, with the remaining 40 percent owned by JODCO Exploration Limited, in which Inpex has a 51 percent interest and Japan Energy and Metals National Corporation (JOGMEC) has 49 percent.
Commissioning Started at Hydrogen and Ammonia Production Project
Meanwhile, Inpex has started commissioning work, including the introduction of natural gas, at its integrated blue hydrogen and ammonia production and utilization demonstration test project in Kashiwazaki City, Niigata Prefecture, Japan.
The project is the first of its kind in Japan to implement an integrated process from production to the utilization of hydrogen and ammonia, the company said in an earlier statement.
The natural gas used as a raw material in the process is domestically sourced from the Inpex-operated Minami-Nagaoka Gas Field in Niigata Prefecture. The carbon dioxide (CO2) emitted during production is injected into previously depleted gas reservoirs in the Hirai District of the Higashi-Kashiwazaki gas field to minimize atmospheric emissions using carbon capture, utilization, and storage (CCUS) technology, according to the statement.
The hydrogen produced by the project will be used to generate electricity that will be supplied to local consumers in Niigata Prefecture. A portion of the hydrogen will be converted into ammonia and supplied to local consumers, the company said.
The commissioning work follows the construction of the project’s plant facilities in July 2023, Inpex said.
Moving forward, Inpex said it will conduct the commissioning of auxiliary equipment using natural gas as fuel, and then move on to the commissioning of the hydrogen production and ammonia production facilities. After the completion of the commissioning work, the project’s demonstration operations are scheduled to start in fall 2025, followed by the initiation of CO2 injection into the reservoir.
Production of hydrogen and ammonia, as well as CO2 recovery for commissioning, are being conducted under a subsidy program adopted by the New Energy and Industrial Technology Development Organization (NEDO), Inpex said. The assessment and implementation of subsurface CO2 storage is being conducted as part of a collaborative study with the Japan Organization for Metals and Energy Security (JOGMEC).
Inpex said it has set a goal to advance lower-carbon solutions based on carbon capture and storage (CCS) and hydrogen by 2035 as one of its growth pillars, with the project representing a key initiative.
Inpex describes itself as Japan’s largest exploration and production company, engaged in the development and operation of oil and gas projects worldwide.
To contact the author, email rocky.teodoro@rigzone.com
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