Japex looks to invest in US tight oil project as operator

Japan Petroleum Exploration Co

13/11/2024 09:31

By Yuka Obayashi
       TOKYO, Nov 13 (Reuters) - Japan Petroleum Exploration
(Japex)  1662.T  is looking to invest in the U.S. tight oil and
gas sector, with the aim of becoming an operator, an executive
said on Wednesday.
    "We are exploring investment opportunities in the U.S. tight
oil and gas sectors, where we are seeking operatorship," Yutaka
Nishimura, Japex's executive officer, told a news conference. 
    "We have some projects under consideration, but there is
nothing specific we can announce at this time," he said.
    Japan's second-biggest oil and gas explorer aims to leverage
the expertise and know-how it has gained from investing in U.S.
tight oil and gas projects over the past years, he added.
    Tight oil is unconventional crude oil extracted from dense
rock formations, such as shale and sandstone, often requiring
hydraulic fracturing to produce at viable rates.
    The U.S. Trump administration's anticipated support for oil
and gas development is also welcomed, Nishimura said.
    Japex has said that it views the United States as the most
appealing investment destination for oil and gas exploration and
production, and that natural gas and liquefied natural gas (LNG)
are poised to play a pivotal role in facilitating energy
transitions.
        On Wednesday, Japex reported a 24% year-on-year drop in
net profit for April-September to 21.14 billion yen ($136
million) due to the yen's rise against the U.S. dollar toward
the end of September, which led to appraisal losses on its
dollar-denominated receivables and payables.
    But the company raised its annual profit forecast by 78% to
78.5 billion yen, driven by stronger-than-expected sales of LNG
and electricity, as well as a one-off gain from selling part of
its cross-shareholdings.
    Japex plans to book a 42 billion yen special gain from
selling one listed security, with proceeds intended for growth
investments. The gain has been included in the revised profit
forecast, Nishimura said.
    "We plan to use 36 billion yen of after-tax profit from the
sale to fund growth investments," Nishimura said.
    ($1 = 155.1500 yen)

 (Reporting by Yuka Obayashi; Editing by Kim Coghill)
 ((Yuka.Obayashi@thomsonreuters.com; +813-4520-1265;))