Japanese firms up stake in Tangguh

Japanese oil and trading companies including Nippon Oil Corp will buy additional stakes in Tangguh LNG project in Indonesia from trader Kanematsu Corp as it plans to focus resources on its core business.

Kanematsu, which is undergoing restructuring, said on Monday it would sell a total 10 percent stake in the Indonesian LNG project it owns through two affiliates for US$130 million) to oil units and affiliates of Nippon Oil, Mitsui & Co, Mitsubishi Corp and INPEX Holdings Inc.

The share transfers will be completed on Oct. 22.

As a result, Nippon Oil will raise its stake in the multi-billion dollar project to 13.45 percent from 12.23 percent, Mitsui and Mitsubishi will respectively increase their shares to 9.92 percent from 9.13 percent and INPEX will inch up its stake to 7.79 percent from 7.17 percent.

Tangguh, in Papua province in the eastern part of Indonesia, is due to produce 7.6 million tonnes of LNG a year from two trains from late 2008. Operator BP Plc holds a 37.16 percent stake. The other partners include China's CNOOC, which has 16.96 percent.(*)