Jogmec backs Inpex's Malaysian oil exploration

OREANDA-NEWS. Japan's state-owned energy agency Jogmec is providing Japanese upstream developer Inpex with about ¥12.3bn (\$104mn) in financing for the firm's deepwater oil exploration project off Malaysia.

Inpex has a 50pc stake and is the operator of Malaysia's deepwater block S offshore Sabah. Jogmec will take half of the equity in return for the financing. The block also features 25pc partners Malaysian state-owned oil firm Petronas and Australian independent Santos. Inpex late last month transferred part of its stakes in two deepwater blocks S and R offshore Malaysia to Santos to strengthen their upstream co-operation.

Oil prices dropping to their lowest level in five years have spurred Tokyo's renewed hopes of possible upstream bargains as it tries to boost its overseas output. Premier Shinzo Abe's government in January approved ¥107bn as part of Japan's ¥96 trillion 2015-16 budget to fund the trade and industry ministry's efforts to enhance energy security, including ¥49bn earmarked solely for Jogmec's 2015-16 upstream financing compared with the 2014-15 budget allocation of ¥47bn.