Japex to Invest Y110B in Overseas Oil, Gas Development

TOKYO (Dow Jones Newswires), July 30, 2008

Japan Petroleum Exploration Co. plans to spend Y110 billion on overseas oil and gas development projects from fiscal 2008 through fiscal 2012 to help spur production growth, The Nikkei reported in the Thursday edition of its Business Daily.

As part of this, Japex will expand natural gas production off the east coast of the island of Java in Indonesia. It is developing a gas field there different from one that is already being tapped and aims to start production in 2010. Plans also call for output to start in the northern part of Sumatra in 2010. Overall, Indonesian production is expected to climb by 15,000 barrels a day.

In Canada, oil sands production will be increased. An environmental assessment has begun at an undeveloped mine separate from the current production site, and the company will confirm the underground reserves and begin constructing facilities. It currently produces 8,000 barrels a day in Canada and aims to raise that by as much as 35,000 barrels a day from fiscal 2014.

Overall, Japex aims to increase the daily production volume from 40,000 barrels at present to 60,000 to 70,000 barrels and double the viable reserves to 350 million barrels by fiscal 2012.

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