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JOGMEC Provides Equity Financing to ITOCHU’s Acquisition of West Qurna 1 Oil Field in Iraq

March 23, 2018

Japan Oil, Gas and Metals National Corporation (JOGMEC) announced today that it will provide equity financing to CIECO West Qurna Limited, a wholly-owned subsidiary established by ITOCHU Corporation, which will acquire a 19.6% stake in the West Qurna 1 Field in the Republic of Iraq.
CIECO West Qurna Limited (CIECO WQ) reached agreement with Shell EP Middle East Holdings B.V. (subsidiary of Royal Dutch Shell plc) to acquire its entire shares of Shell Iraq B.V. (SIBV), a wholly-owned subsidiary of Shell EP Middle East Holdings B.V.. Iraqi government earlier approved the transaction.

SIBV holds a 19.6% stake in the Technical Service Contract for the West Qurna 1 Oil Field, which is located in the southern part of Iraq and is operated by Exxon Mobil. The field is one of the largest oil fields in the world with expected recoverable reserves of over 20 billion barrels.

JOGMEC will provide 40% equity to CIECO WQ, subject to Iraqi government approval.

It is expected that Japanese company’s participation in the development of a world-class oil field will contribute to stable oil supply to Japan, as well as strengthen and deepen a relationship with Iraq.

Background Information

1. Corporate Data: CIECO West Qurna Limited

Date of Establishment January 27, 2017 
Director Toshiyuki Mori
Shareholders after JOGMEC's Funding ITOCHU 60%
JOGMEC 40%

2. Participating Interest

ExxonMobil * 32.7%
PetroChina 32.7%
ITOCHU (CIECO WQ) 19.6%
Pertamina 10.0%
Oil Exploration Company(Iraqi state oil company) 5.0%
* Lead Contractor

3. JOGMEC Assistance

Date of Approval April 26, 2017
Estimated Amount of Equity Financing US$220million
Note: Approval has been made in accordance with JOGMEC’s technical, economic, and business-environment criteria and the consent from the Minister of Economy, Trade and Industry has been obtained.

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