JOGMEC has announced today that it will provide equity financing to INPEX OFFSHORE NORTH WEST SABAH, LTD., established by INPEX CORPORATION (INPEX), which acquired an operating interest in the exploration Deepwater Block S offshore Sabah, Malaysia.
According to JOGMEC, the estimated amount of equity financing is approximately JPY 12.3 Billion ($103 million).
In January 2012, INPEX announced it has entered into a Production Sharing Contract for the Block S through its wholly owned subsidiary, INPEX OFFSHORE NORTH WEST SABAH, LTD., and started the exploration activities as an operator.
The INPEX subsidiary holds 50% interest at the present, and the remaining 50% interest is held 25% each by SANTOS SABAH BLOCK S LIMITED and PETRONAS CARIGALI SDN. BHD, the exploration and production subsidiary of the national oil company of Malaysia, PETRONAS.
According to the press release, JOGMEC will provide equity capital up to 50% covering the exploration expenditures incurred by the INPEX subsidiary for the project.
A number of oil and gas fields have been discovered offshore Sabah, and this Block is also considered to have large potential, the press release further reads.
JOGMEC says that this support will further enhance INPEX’s upstream activities in Malaysia being one of its focusing areas as well as reinforce Japan’s energy security when successful.