KUALA LUMPUR (April 10): INPEX, Japan's largest oil and gas exploration company, has clarified that it remains fully committed to its investments in Abu Dhabi while actively pursuing mergers and acquisitions in Sarawak, Malaysia. 

In an email response to The Edge, INPEX spokesperson said:

"We can confirm that despite the current instability in the Middle East region, our commitment to our business and associated activities in Abu Dhabi remains unchanged..."

"'Specifically concerning Malaysia, the company is engaged in proactive exploration activities and pursues opportunities for M&A in the Sarawak Offshore area, as stated in the 2025-2027 Mid-term Business Plan."

The company was responding to a recent Nikkei Asia article that had implied INPEX might redirect Middle East funds to Southeast Asia due to regional instability. 

The company noted that between 30% and 40% of its ¥850 billion growth investment budget for fiscal year 2026 will be directed to Abu Dhabi operations "with the caveat that the timing of such investments may need to take into account the geopolitical situation".

That allocation excludes additional spending on exploration and the Abadi LNG Project —  a US$20 billion (RM80 billion), 9.5 mtpa onshore natural gas development in Indonesia's Arafura Sea, operated in partnership with Pertamina and PETRONAS.

At the same time, the company positioned Southeast Asia, including Malaysia, as one of its five core business areas for development and expansion. 

The projects in Malaysia that INPEX is currently involved in include Block SK-10 (production), Block 4E (exploration), Block SK418 (exploration), Block SK510 (exploration), Block SB306A (exploration), Block SB036B (exploration) and Block 2A (exploration).