In the summer of 1967, the late Sheikh Zayed Bin Sultan Al Nahyan (the former President of the United Arab Emirates and the former Ruler of Abu Dhabi),may his soul rest in peace, took the decisive step of allowing the Japanese companies to acquire oil concessions in the Emirate of Abu Dhabi, which until then had been granted only to Western companies. Taking this opportunity, three Japanese independent companies, Maruzen Oil Co., Ltd., Daikyo Oil Co., Ltd. (which have merged into the present Cosmo Oil Co., Ltd.) and Nippon Mining Co., Ltd. (now JX Nippon Oil & Gas Exploration Corporation) took part in an international tender for a concession area relinquished by Abu Dhabi Marine Areas Ltd., (ADMA), and submitted the winning bid. On 6th December of the same year, an agreement concerning the exploration and development of the Mubarraz oil concession area in Abu Dhabi offshore areas was signed.
On 17th January, 1968, Abu Dhabi Oil Co., Ltd. (Japan), (ADOC), was established with a capital of 600 million yen, equally subscribed to by the three companies. In September 1969, the exploratory well No.1 successfully produced the long-awaited crude oil. This underground structure was given the name of Mubarraz Oil Field, and was the first step towards ADOC's success in Abu Dhabi. Although the United Arab Emirates, (UAE), was founded on 2nd December, 1971, ADOC had advanced into this area before the nation came into existence. In May 1973, the production of oil began, and in June 1973, the first shipment of Mubarraz crude oil left for Japan.
On 28th April,1979, ADOC entered into a supplementary agreement which granted ADOC a new concession in the West Mubarraz area, offshore Mubarraz Island. On 27th August of the same year, ADOC and its three parent companies established Mubarraz Oil Co., Ltd., (MOCO), for the exploration and development of the new concession area. Consequently, the West Mubarraz Concession area was transferred to MOCO, and an operating agreement was concluded between ADOC and MOCO in which ADOC undertook the management of all operations in the new concession areas.
Umm Al-Anbar Oil Field, (AR), and the Neewat Al-Ghalan Oil Field, (GA), of the new concession area, started oil production in 1989 and 1995, respectively. The crude oil produced from these two oil fields and the Mubarraz crude oil is commingled together and the new commingled oil was given the name of “Mubarraz Blend”, the entire production of which has been regularly shipped to Japan.
Meanwhile, the Japanese government decided to abolish the Japan National Oil Corporation, (JNOC), in March 2005, and a problem arose concerning the disposal of its assets. In these circumstances, ADOC acquired all the assets of MOCO in February 2005 and on 1st January, 2006, MOCO was completely merged with ADOC. On 3rd February, 2011, ADOC successfully signed a new Concession Agreement with Abu Dhabi Supreme Petroleum Council to continue production of oil from the existing 3 oil fields, namely Mubarraz, AR and GA oil fields after the expiry of the current Concession Agreement on 6th December, 2012, for a period of 30 years together with the development of some structures of the Hail Field which is adjacent to Mubarraz Island.
The UAE, which came into existence after ADOC started oil development in Abu Dhabi, is one of the most economically advanced and politically stable countries in the Middle East. Since its foundation, the UAE nation has achieved tremendous growth, under the wise and strong leadership of the late president Sheikh Zayed bin Sultan Al Nahyan, may his soul rest in peace, and the current President, His Highness Sheikh Khalifa bin Zayed Al Nahyan.
During this period, the UAE has attained a remarkable growth in crude oil transactions with Japan, which is currently relying on the UAE for approximately one quarter of its entire crude oil imports, is a trading partner that accounts for nearly 15 percent of the UAE's foreign trade. Consequently, the two countries are enjoying deep-rooted diversified strong relations with each other.
Abu Dhabi maintains an oil operating system in which Abu Dhabi National Oil Company (ADNOC), a state-owned corporation that is responsible for the production and marketing of all Abu Dhabi oil and gas, takes part in the oil and gas projects under the control of the Supreme Petroleum Council. The Supreme Petroleum Council is the highest legislative authority in Abu Dhabi Emirate in charge of, formulating and supervising the implementation of Abu Dhabi's petroleum policies. Abu Dhabi is one of the very few countries in the world that allows 100 percent foreign oil companies to develop, produce and export oil.
ADOC, a 100-percent Japanese-operating oil development company, has established over the years an elaborate optimal operation system in close cooperation with ADNOC. Since its establishment, ADOC has been highly regarded for its steady achievements in Abu Dhabi.
Based on the good reputation earned over the years and the appreciation of the Government of Abu Dhabi towards ADOC’s performance, ADOC will continue to exert strenuous efforts to enhance its production capacity and to perform oil operations efficiently with a special emphasis on environment issues.