JOGMEC has announced that it will provide equity financing to JX Nippon Oil & Gas Exploration (Deepwater Sabah) Limited and INPEX Offshore South West Sabah Limited, established by JX Nippon Oil & Gas Exploration Corporation (JX) and INPEX CORPORATION (INPEX) respectively, which acquired participating interests in the exploration Deepwater Block R offshore East Malaysia.
According to JOGMEC, the estimated amount of equity financing is approximately JPY 22.6 Billion ($189.8 million).
In January 2012, JX and INPEX announced they have entered into a Production Sharing Contract and started the exploration activities for the block through their subsidiaries. The subsidiaries hold 27.5% interest respectively and the remaining 45% interest is held by SANTOS SABAH BLOCK R LIMITED (20%) and PETRONAS CARIGALI SDN. BHD (25%), the exploration and production subsidiary of PETRONAS, the national oil company of Malaysia.
JOGMEC will provide equity capital up to 50% covering the exploration expenditures incurred by the subsidiaries of JX and INPEX for the project.
A number of oil and gas fields have been discovered offshore East Malaysia, and this Block is also considered to have large potential, JOGMEC emphasized in the statement.