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JOGMEC provides equity financing to JX Group
for an exploration project in Malaysia

October 13, 2011

 Japan Oil, Gas and Metals National Corporation ("JOGMEC")(President: Hirobumi Kawano) decided to provide equity capital finance to a subsidiary of JX Nippon Oil & Gas Exploration Corporation ("JX")(President: Mr. Makoto Koseki) for an exploration project in Block SK333 located onshore Sarawak, Malaysia.
 
 In December 2007, JX entered into a Production Sharing Contract for Block SK333 and started exploration activities as operator with a 75% interest. The remaining 25% interest is held by PETRONAS Carigali Sdn. Bhd., the exploration and production subsidiary of the national oil company of Malaysia, PETRONAS. 
 
 JOGMEC will provide equity capital covering up to 75% of the exploration expenditures incurred by JX Nippon Oil & Gas Exploration (Onshore Sarawak) Limited, JX's wholly owned subsidiary established for the project. 
 
 A number of oil and gas fields have been discovered in Sarawak, and this Block is also considered promising. While JX has several blocks in Malaysia, including producing Block SK10 which is one of its key operated projects, JOGMEC's support will further enhance JX's upstream activities in Malaysia as well as reinforce Japan's energy security when successful. 
Supplemental remarks

Project profile

1)Corporate Data
Company Name JX Nippon Oil & Gas Exploration (Onshore Sarawak) Limited
Date of Establishment September 1, 2011
President Mr. Makoto Koseki
Shareholders: JX Nippon Oil & Gas Exploration Corporation(Voting right: more than 50%)/Japan Oil Gas and Metals National Corporation (Voting right: less than 50%)

2)Block (see attached map)
  SK333 Block, onshore Sarawak, Malaysia
3)Participating Interest
Participants  Participatinginterest
JXNipponOil&GasExploration(OnshoreSarawak)Limited(Operator) 75.0%
PETRONAS Carigali Sdn. Bhd.  25.0%

Adoption as an eligible project for equity financing

 1)Adoption date: October 6,2011
 2)Estimated amount of equity financing: Approx. JPY 10.1 billion

Reasons for adoption

  • Satisfying JOGMEC's technical, economical, political and business related criteria
  • Expected to increase the competitiveness of Japanese upstream industry
  • Eligible for 75% equity financing because of large expected reserve and operatorship

Attachment
exploration project in Malaysia

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