Embracing a net-zero vision to secure a sustainable future for the global energy industry
Hiroshi Fujii, President & CEO of Japan Oil Development Co. Ltd. (JODCO), talks about the 50th-anniversary celebrations of INPEX/JODCO.
How is INPEX growing as a sustainable solutions provider within the global exploration and production sector? Could you elaborate on some of your net-zero initiatives?
Earlier this year, INPEX Corporation, the parent company of INPEX/ JODCO, announced its long-term strategy and medium-term business plan called INPEX Vision@2022. The vision reflects our basic management policy towards a net-zero carbon society by 2050, which consists of a two-pronged approach. We will continue to focus on our core business of developing and producing crude oil and natural gas to maintain and expand a stable supply of energy while making the business cleaner. Meanwhile, we will grow our five net-zero businesses, which include hydrogen/ammonia, CCUS, renewable energy, methanation, and forest conservation, allocating a portion of the revenue from our oil and gas business to invest in these businesses. One notable example of our five net-zero businesses is the clean ammonia supply chain linking the UAE and Japan. We recently oversaw a demonstration of this project in close partnership with ADNOC, which supplied us with clean ammonia manufactured in Abu Dhabi. INPEX then transported the ammonia to Japan for clean energy experiments conducted by Japanese utilities. Ammonia offers various advantages as an energy carrier of hydrogen and as a fuel for decarbonisation, and we plan to continue working with ADNOC and Abu Dhabi authorities to expand this project into a large-scale commercial operation.
What are some of the recent major project developments for INPEX? How do they indicate the direction the industry is taking amid evolving market dynamics?
Late last year, we announced that we discovered multiple conventional oil, condensate, and gas columns from drilling an exploration well at Onshore Block 4 in Abu Dhabi, marking the first oil discovery of mainly Murban grade from this concession area as well as from a new geological formation. We are now conducting data analysis and production tests as well as further exploration activities to pursue the potential for the commercial development of the block. We expect the production of low-cost, low-carbon and quality oil from Abu Dhabi will help make our core upstream business more resilient, in turn helping us invest in energy solutions of the future.
What will be the major theme for INPEX’s appearance at ADIPEC this year?
In 2023, INPEX/JODCO will celebrate its 50th anniversary, and we will be leveraging this milestone to reaffirm our unwavering commitment to Abu Dhabi, ADNOC, and all our local stakeholders. Almost 50 years ago, in 1973, JODCO was established through the capital participation of several oil development companies and acquired a participating interest in the ADMA concession from BP. In 1978, we formalised a joint development agreement with ADNOC to develop the Upper Zakum Oil Field and began production there in 1982. Looking back, it was an honour to work with ADNOC on this important project, which has since then turned into one of Abu Dhabi’s—and the world’s—largest offshore oil fields. In all this time, the oil market has taken many turns, and we pride ourselves in having partnered ADNOC through both good times and challenging ones. Our 50th anniversary is a celebration of all that we have been able to accomplish until now, and an opportunity to convey our appreciation for the support we have received from President His Highness Sheikh Mohamed bin Zayed Al Nahyan and the leadership of Abu Dhabi, ADNOC, our partners and the local communities here. It is also a commitment on our part that we shall continue working with ADNOC and all our stakeholders here in Abu Dhabi over the next 50 years, as we face new challenges in the energy sector, to help ensure that Abu Dhabi continues to flourish as one of the world’s energy capitals.
How important is ADIPEC 2022, both to your company and to the global oil, gas, and energy industry?
ADIPEC is a fixture in INPEX/ JODCO’s annual activity calendar and a key event that brings together the world’s most important players in the energy industry to Abu Dhabi, a very important location both for INPEX/ JODCO as well as regional and global energy circles. Particularly given the recent volatility in the market and the need to carefully consider the world’s approach to energy security, climate issues, and the transition towards net zero, we expect that this year’s edition of ADIPEC will once again be instrumental in sustaining our dialogue on the challenges and priorities that we face as an industry, from both a commercial and technical perspective.
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