Japex to invest in US tight-oil project as operator
A senior executive at Japan Petroleum Exploration (Japex), said that the company is interested in investing in the U.S. tight gas and oil sector with a view to becoming an operator.
Yutaka Nishimura said at a press conference that Japex is exploring investment opportunities for the U.S. tight gas and oil sectors. We are looking to become operators.
He said, "We are considering some projects but we cannot announce anything specific at this point."
He added that Japan's second largest oil and gas company, which has invested in U.S. tight gas and oil projects for the past few years, is looking to use the experience and expertise it has gained.
Tight oil is crude oil that has been extracted from rock formations such as shale or sandstone. It often requires hydraulic fracturing in order to be produced at a viable rate.
Nishimura also said that the U.S. Trump Administration's anticipated support of oil and gas development was welcomed.
Japex said it views the United States of America as the most attractive investment destination for oil-and-gas exploration and production. It also stated that natural gas, including liquefied gas (LNG), is poised to be a key player in facilitating the energy transition.
Japex announced a 24% drop in its net profit from April to September. The yen rose against the dollar at the end of the month, resulting in appraisal losses for the company's dollar-denominated receivables.
But the company raised its annual profit forecast by 78% to 78.5 billion yen, driven by stronger-than-expected sales of LNG and electricity, as well as a one-off gain from selling part of its cross-shareholdings.
Japex intends to book a special gain of 42 billion yen from the sale of one listed security. Proceeds will be used for growth investments. Nishimura stated that the gain was included in the revised profit estimate.
Nishimura stated that the 36 billion yen profit after tax from the sale would be used to fund investments for growth.
(source: Reuters)
