JOGMEC provides equity financing to Nippon Oil Exploration Limited
for an oil and gas exploration project in Vietnam
Japan Oil, Gas and Metals National Corporation ("JOGMEC", President: Hirobumi Kawano) decided to provide equity capital finance to a subsidiary of Nippon Oil Exploration Limited ("NOEX", President: Mr. Makoto Koseki) for the oil and gas exploration project offshore Vietnam.
In November 2007, NOEX entered into a Production Sharing Contract to acquire a 40% interest of Block16-2 Offshore Vietnam where Petrovietnam Exploration Production Corporation Limited is the operator. JOGMEC will provide equity capital covering up to 75% of the exploration expenditures incurred by Nippon Oil Exploration (Cuu Long) Ltd., an affiliate established by NOEX in April 2010 dedicatedly for this project.
Block 16-2 is located in the Cuu Long Basin where a number of oil and gas fields have been discovered, including Bach Ho, which is known as the biggest oil and gas field in Vietnam, and the Rang Dong and Phuong Dong oil fields operated by another subsidiary of NOEX. While JOGMEC's financial supports will further expand NOEX upstream activities in one of its key areas, specifically in Vietnam, this project is also expected to enhance Japan’s E&P activities, as well as reinforce Japan’s energy security when successful.
Supplemental remarks (Project profile):
(1) Corporate data
| Company Name |
Nippon Oil Exploration (Cuu Long) Ltd. |
| Date of Establishment: |
April 19, 2010 |
| Head Office |
Japan |
| President |
Mr. Makoto Koseki |
| Shareholders |
Shareholders (planned): Nippon Oil Exploration Limited (Voting right: more than 50%)
/ Japan Oil, Gas and Metals National Corporation (Voting right: less than 50%) |
(2) Blocks (see attached map)
Offshore: 16-2
(3) Participating Interest
| License Holder |
ParticipatingInterest |
| Petrovietnam Exploration Production Corporation Limited (PVEP) (*) |
45% |
| Nippon Oil Exploration (Cuu Long) Ltd.(NOEX(Cuu Long)) (**) |
40% |
| Joint Venture Vietsovpetro (VSP) (***) |
15% |
(*) Operator, 100% subsidiary of Petrovietnam
(**) The transfer of NOEX’s Participating Interest in Block 16-2 to NOEX (Cuu Long) Ltd. is under application and subject to the approval of Vietnamese Government.
(***) Joint Venture Company of Petrovietnam and Russia’s state-owned Zarubezhneft
(4) Estimated amount of equity financing (2010-2012): Approx. JPY 5.6 billion
(5) Reasons for adoption
- Satisfying JOGMEC’s technical, economical, political and business related criteria
- Expected to increase the competitiveness of Japanese upstream industry
- Eligible for 75% equity financing because of large expected reserve and large participating interests of Japanese company
Attachment
oil and gas exploration project in Vietnam
The inquiry about this page.
Public Relation Division
Tel 03-6758-8106