INPEX to redirect its share of oil produced in Kazakhstan, Azerbaijan to Japan

Japanese oil company INPEX has announced its intention to prioritize sales of oil produced in Kazakhstan and Azerbaijan with its participation in the country, Report informs referring to the Yomiuri newspaper.

It is noted that concerns about the stability of oil supplies are growing due to the de facto blockade of the Strait of Hormuz, and the company hopes to diversify supply sources for Japan, which currently meets over 90% of its oil needs with supplies from the Middle East.

Oil from Azerbaijan and Kazakhstan will travel via the Red Sea and the Mediterranean, rounding the Cape of Good Hope.

The journey from Azerbaijan will take 25 to 50 days, from Kazakhstan 35 to 55 days, while deliveries through the Strait of Hormuz take 20 days.

INPEX owns stakes in the Kashagan field in Kazakhstan and the Azeri-Chirag-Gunashli field in Azerbaijan. Until now, the company had been shipping oil from these fields as spot deliveries primarily to Europe.

However, due to the crisis in the Middle East and concerns about an oil shortage in the Japanese market, the company has decided to redirect some of its spot deliveries "primarily to the Japanese market."