Japex sees U.S. as 'enticing' destination for energy exploration

Japan Petroleum Exploration Co

09/02/2024 09:30

TOKYO, Feb 9 (Reuters) - Japan Petroleum Exploration
(Japex)  1662.T  sees the United States as the most appealing
investment destination for oil and gas exploration and
production, despite political risks posed by this year's
election, its senior managing executive officer said on Friday.
    "With its wealth of natural resources, low production costs,
and well-developed infrastructure, we view the United States as
the most enticing investment destination for E&P at present,"
Michiro Yamashita, senior managing executive officer, told a
news conference.
    Yamashita, slated to become Japex' president from April 1,
said that the U.S. move to pause approvals for pending and
future applications to export liquefied natural gas (LNG) from
new projects was a surprise and raised concerns.
    Natural gas and LNG are poised to play a pivotal role in
facilitating energy transitions and the U.S., the world's
largest LNG exporter, has adopted a notably inward-looking
policy, when it should assume a leadership role in supporting
the global economy and the transition to address global climate
change, Yamashita said.
    "Given the inward-looking policies under Donald Trump, we
need to be mindful of U.S. political risk to some extent,
irrespective of whether the Democrats or Republicans emerge
victorious in this year's election," he said.
    Still, the pause would not cause any direct impact on Japex
business or earnings, and the company would not shelve its
investment in the U.S., Yamashita said.
    "We are not thinking of slowing down the pace of our U.S. 
business," he said. 
        Japex on Friday reported a 15.6% drop in April-December
net profit to 36.5 billion yen ($244 million) on lower energy
prices and a reduced dividend from the Sakhalin 1 oil project in
Russia.
    It stuck to its full-year profit forecast of 45 billion yen.
($1 = 149.4500 yen)

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