INPEX to shift share of Kazakhstan, Azerbaijan oil to Japan

Japan’s INPEX plans to redirect part of its oil output from projects in Azerbaijan and Kazakhstan toward the domestic Japanese market, prioritising local buyers amid growing concerns over global supply disruptions.

According to reporting by Yomiuri Shimbun, cited by Azerbaijani media, the company intends to give preference to Japanese firms when selling crude produced from overseas assets in which it holds stakes.

The move comes as fears intensify over the stability of global oil supplies due to the effective blockade of the Strait of Hormuz. Japan currently relies on the Middle East for more than 90% of its oil imports, making it highly vulnerable to disruptions in the region.

To mitigate these risks, INPEX is looking to diversify supply routes. Oil shipments from Azerbaijan and Kazakhstan are expected to be rerouted via longer maritime paths through the Red Sea and the Mediterranean Sea, bypassing the Cape of Good Hope.

Under this arrangement, deliveries from Azerbaijan are expected to take between 25 and 50 days, while shipments from Kazakhstan could take 35 to 55 days. By comparison, transport through the Strait of Hormuz typically takes around 20 days.

INPEX holds stakes in the Kashagan oil field and the Azeri-Chirag-Gunashli. Until now, crude from these projects has largely been sold to Europe via spot shipments.

However, amid the escalating crisis in the Middle East and concerns over potential shortages in Japan, the company has decided to redirect part of these spot supplies primarily to the Japanese market.

By Tamilla Hasanova