Oil
Japan's Inpex maintains Middle East oil commitment
Japanese energy firm Inpex maintains its commitment to Middle East oil and gas assets despite shipping disruptions in the Strait of Hormuz.
Key points
- Inpex insists it will not reduce its reliance on Middle Eastern oil operations.
- Offshore operations in Abu Dhabi faced difficulties, while onshore production remained unaffected.
- Japan previously sourced about 94 per cent of its crude imports from the Middle East in 2025.
What happened
Japanese energy producer Inpex has affirmed its commitment to its operations in the Middle East, despite months of shipping disruptions through the Strait of Hormuz. According to reporting by The National, the disruptions followed US-Israeli strikes on Iran that began on February 28, severely impacting maritime logistics and forcing Tokyo to release emergency oil reserves and seek alternative suppliers.
Masato Kamiya, managing director of Inpex's Abu Dhabi business, stated that the company has no intention of scaling back its regional footprint. While offshore crude operations in Abu Dhabi encountered hurdles, onshore production continued without disruption. Japan relied on the Middle East for approximately 94 per cent of its crude imports in 2025, leaving the world's fourth-largest economy highly exposed when shipping lanes were restricted.
Strategic adjustments and gas expansion
The crisis prompted Japan to diversify its supply sources and invest in pipeline infrastructure that bypasses the Strait of Hormuz. By September, the Middle East's share of Japan's crude imports had fallen to 68.4 per cent, with the UAE and the United States stepping in as major alternative suppliers. Despite these shifts, Inpex views Abu Dhabi as a core operational area, maintaining stakes in major fields such as Upper Zakum and Lower Zakum.
In addition to crude oil, Inpex is expanding its footprint in Abu Dhabi's natural gas sector. The company holds a significant interest in Onshore Block 4 and has acquired a stake in the Bab Gas Cap concession, aligning with the UAE's strategy to bolster domestic gas production and enhance long-term energy security.
Why it matters
The ongoing vulnerability of key maritime chokepoints like the Strait of Hormuz underscores the fragility of global energy supply chains and reinforces the strategic necessity of supply diversification for major importing nations. For energy investors and African producers, such geopolitical shifts highlight the importance of secure, geographically balanced portfolios. With global commodity benchmarks reflecting tight market conditions—including Brent spot prices at 107.03 US dollars per barrel and WTI at 99.64 US dollars per barrel as of November 2026, according to US EIA data—resource-rich nations outside traditional high-risk corridors have a distinct opportunity to attract investment and supply vital hydrocarbons to international markets.
Original reporting
This article draws on the following reports. Read them in full on the publishers’ sites.
Context from CEII
Crude benchmarks move budgets, currencies and inflation in producer and importer countries alike. For economies such as Nigeria, where fuels dominate exports, production and refining decisions move the whole economy.
1.2% of Japan’s merchandise exports were fuels in 2025Countries in this story
Written by the CEII Desk, the Centre’s automated newsroom, from the reporting credited above and CEII’s own data. Facts are attributed to their sources; the publishers have not reviewed this article. Spotted an error? Tell our editors.
