Financial assistance to Japanese companies
Oil and natural gas exploration and production projects (E&P projects) require huge amounts of investment. JOGMEC provides equity capital to Japanese companies for oil and natural gas E&P projects to mitigate the risks for them. After the commercial discovery of oil or gas reserves, JOGMEC also provides liability guarantees for oil and natural gas E&P projects conducted by Japanese companies to support their finance.
JOGMEC also provides equity capital and liability guarantees for LNG receiving terminals/transshipment projects in order to secure stable LNG supply for Japan.
To launch oil and natural gas exploration and development projects by a Japanese company, it usually establishes a project company to operate each project. The project company raises funds for exploration by issuing new stock, and JOGMEC provides equity capital by purchasing such stock. After a decision for commercial development is made, JOGMECʼs policy is to divest its capital holdings. Development projects, LNG receiving terminals/transshipment projects, asset acquisition and M&A are also within the scope of JOGMEC’s equity capital program.
Investment Scheme and.
Percentage limit of amount of equity capital
JOGMEC provides liability guarantees to Japanese companies for their finance for oil and natural gas development projects, LNG receiving terminals/transshipment projects, asset acquisition and M&A. JOGMEC also provides completion guarantees for projects.
Representative Liability Guarantee Scheme
Recent examples of our support
Increasing support to LNG projects in Oceania
Australia is expected to be the largest LNG supply region for the East Asian market. JOGMEC is providing equity capital and liability guarantees for multiple LNG development projects in the country in which Japanese companies are participating.
Progress of LNG projects in Mozambique
Huge gas fields have been discovered in offshore Mozambique, where a JOGMEC-associated Japanese company is participating in an exploration project. This region is expected to contribute to a stable energy supply for Japan and other Asian countries as a major LNG supply base.
Progress of LNG projects in the Arctic
JOGMEC is providing equity capital and liability guarantees for Arctic 2 LNG Project in Russia.
As this world-class LNG project envisages export to the Asian market, Japan’s participation will largely contribute to stable LNG supply to Japan with wider diversification of import sources.