Japan and Russia have agreed to work together on the development of an oil field in Russia’s Siberian region. The effort will help Japan to find a wider variety of energy sources, and Russia will benefit from the improved export profits. With recent international sanctions being enacted against importing oil from Iran, both are looking to reduce their dependency on crude oil from the Middle East, especially Japan, who gets over 90% of their oil from the region.
An area in eastern Siberia is understood to have a large reserve of oil, and Japan Oil, Gas and Metal National Corp. and Russia’s Gazprom Neft will jointly construct an oil field there. If projections turn out correct, it is believed that tens of thousands of barrels of oil can be filled per day, but that would only account for 1 to 2% of Japan’s oil imports. Thus, the Japanese company is continuing to look into developing other oil fields in Siberia, and work on agreements with other companies.
Previous attempts by Japan to work together with Russian companies on harvesting oil have not work out so well. in 2009, natural gas began being produced in the Sakhalin-2 project, but the Japanese firms involved could only get a little over 22% of the share. The two countries had plans to get oil from one of the world’s largest reserves in Iran, with Japan securing 75%, but the project was scrapped when the international sanctions against Iran starting increasing in order to dissuade them from nuclear weapons development.
[Via The Macon Telegraph]
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