JNOC To Invest in Iranian Offshore Fields

Japan National Oil Corporation will invest in and grant a guarantee to JJI S&N B.V. JNOC's investment and guarantee are required to finance an oil development project in which the recipient firm is involved.

JJI S&N B.V. acquired on December 23, 2002 twenty percent participating interest in the Service Contract for the Integrated Development of Soroosh and Nowrooz Oil Fields offshore Iran signed by the National Iranian Oil Company and Shell Exploration B.V. in November 1999.

On both the Soroosh and Nowrooz oil fields, development work is being implemented in order to achieve full-scale production as prescribed in the Service Contract. It is expected that full-scale production will be realized by the end of 2003. JNOC's investment in the joint venture, which will be based in the Netherlands, will be $13.8 million. Under terms of the deal, it will also provide a loan guarantee of $60 million for development on the project.

Shareholders in JJI S&N B.V. are Japan Petroleum with 41.67%; INPEX with 25%; JNOC with 33.33%.