JOGMEC said that it will provide equity financing to JX Nippon Oil & Gas Exploration and Inpex Offshore South West Sabah, established by JX and Inpex respectively, which acquired participating interests in the exploration Deepwater Block R offshore East Malaysia.
In January 2012, JX and Inpex revealed they have entered into a Production Sharing Contract and commenced the exploration activities for the block through their subsidiaries, namely JX Nippon Oil & Gas Exploration (Operator) and Inpex Offshore South West Sabah. The subsidiaries hold 27.5% interest respectively and the remaining 45% interest is held by Santos Sabah Block R (20%) and Petronas Carigali (25%), the exploration and production subsidiary of Petronas, the national oil company of Malaysia.
JOGMEC will provide equity capital up to 50% covering the exploration expenditures incurred by the subsidiaries of JX and Inpex for the project.
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Image: Inpex