JOGMEC Provides Equity Financing for Japex to Acquire Stake in Kerapu Block
Japan Oil, Gas and Metals National Corporation, or JOGMEC, (President: Hirobumi Kawano) announced that it will provide equity financing to Japex West Natuna Limited, established by Japan Petroleum Exploration Co., Ltd. (JAPEX), which will acquire a 30 percent interest in the Kerapu Block offshore Indonesia.
In July 2013, Japex West Natuna Limited signed an agreement to acquire a 30 percent participating interest in the Kerapu Block from an affiliate of Mubadala Petroleum, the operator of the Block. The transfer of interest is subject to the Indonesian Government approval.
JOGMEC will provide equity capital covering up to 50 percent of the exploration expenditures incurred by the JAPEX subsidiary after the aforesaid governmental approval is obtained.
The Kerapu Block is located approximately 124 miles (200 kilometers) northwest of Natuna Island, in the Indonesian waters of the West Natuna Sea where a number of oil and gas fields have been discovered. This project is expected to enhance JAPEX’s upstream activities in Southeast Asia being one of its focus areas, and will reinforce Japan’s energy security when successful.
1. Corporate Data: Japex West Natuna Limited
- Date of Establishment: June 17, 2013
- President: Shigeru Mitsuya
- Shareholders after JOGMEC’s funding: JAPEX (more than 50 percent), JOGMEC (less than 50 percent)
2. Participating Interest
- Pearl Oil (Tachylyte) Limited* 70 percent (Operator)
- Japex West Natuna Limited 30 percent
*Wholly-owned affiliate of Mubadala Petroleum
3. JOGMEC Assistance
- Date of Approval: Nov. 12
- Estimated Amount of Equity Financing: approximately $14 million (JPY 1.4 billion)
- Note: Approval has been made in accordance with JOGMEC’s technical, economic, and business-environment criteria and the consent from the Minister of Economy, Trade and Industry has been obtained
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