JOGMEC provides financing to JAPEX's exploration project

By Romel S. Gurky

Japanese firm JOGMEC announced on Tuesday that it will provide equity financing to Japex West Natuna Limited, established by Japan Petroleum Exploration Co.,Ltd. (JAPEX), which will acquire a 30 percent interest in the Kerapu Block offshore Natuna Island.

In July 2013, Japex West Natuna Limited signed an agreement to acquire a 30 percent participating interest in the Kerapu Block from an affiliate of Mubadala Petroleum, the operator of the block. The transfer of interest is subject to the Indonesian government approval, the firm said in a statement.

JOGMEC will provide equity capital covering up to 50 percent of the exploration expenditures incurred by the JAPEX subsidiary after the governmental approval is obtained.

The Kerapu Block is located approximately 200km northwest of Natuna Island, in the Indonesian waters of the West Natuna Sea where a number of oil and gas fields have been discovered. This project is expected to enhance JAPEX?s upstream activities in Southeast Asia being one of its focus areas, and will reinforce Japan ?s energy security when successful.

Editing by Johannes Simbolon