Japanese oil company Inpex Corporation and Russian state-owned integrated oil company Rosneft have signed an agreement to explore and develop an oil and gas field in the Far East coast Russian state of Magadan. The deal will see the two firms working on the reserve that is estimated to contain around 3.4 billion barrels of oil.
The amount of oil in the reserve is equal to almost three years worth of oil imports for energy-hungry Japan, who is now spending a lot of its budget on importing fossil fuel due to the problems it is experiencing with 48 of its 50 nuclear reactors currently offline. The two companies will establish joint ventures to carry out exploratory missions. Inpex will be holding a third of each of the blocks in Magadan 2 and 3 in the Sea of Okhotsk according to a statement from the company. The company also stated that this partnership will enable them to “have an opportunity to expand its activities in Russia, a country with huge hydrocarbon reserves.”
This partnership is a result of the recent discussions between Japanese Prime Minister Shinzo Abe and Russian President Vladimir Putin to push projects in the Far East. Just last month Rosneft and Japan’s Marubeni Corporation signed an agreement for a possible construction of a liquified natural gas (LNG) plant in Russia. Japan Oil, Gas, and Metals National Corp. (JOGMEC) taking care of 50-75% of the financial costs with the backing of the Japanese government. Japan is also taking on various natural gas production projects in the Sakhalin Islands.
[ via Yahoo ]
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