Japex will sell 10% stake in Canadian shale gas project to Petronas

China Petroleum & Chemical News Network reported on May 14 that offshore engineering reported that Japan Petroleum Exploration Corporation (Japex) recently decided to sell its 10% interest in the Canadian shale gas project to Petronas Energy Canada (Petronas Energy Canada).

Japex will divest its stake in the North Montene (NM) joint venture through its subsidiary Japex Montney.

NM is responsible for the development and production of shale gas in the North Monteney area of ​​British Columbia.

The shale gas project will provide natural gas to the Pacific Northwest LNG project, which was cancelled in 2017 due to the harsh environment and low prices.

Japex stated in a press statement that even after deciding not to continue the LNG project in July 2017 due to changes in the business environment, Japex has been working with PECL and its partners to maximize the NM project by optimizing the development plan the value of.

However, Japex stated that its decision to withdraw from Canadian shale assets was due to the expected exploration and production business will face a more severe environment.

The company pointed out that this is due to the long-term impact of the new crown epidemic, including subsequent structural changes, and accelerated global decarbonization.

In 2018, Japex formulated a medium-term business plan, which includes transforming the structure of its exploration and production business to ensure sustainable growth under an oil price environment of US$50-60 per barrel.

The company said in a statement that based on this understanding, our exploration and development projects have been working hard to improve profitability by optimizing the business portfolio, including the sale of assets.

Other companies participating in Canadian shale gas projects include Petronas (62%), Indian Petroleum Group (10%) and Brunei Petroleum Group (3%).

Hao Fen translated from offshore engineering

The original text is as follows:

Japex to sell 10% stake in Canadian shale gas project to Petronas

Japan Petroleum Exploration (Japex) has decided to sell its 10% interest in the Canadian shale gas project to Petronas Energy Canada (PECL) for an undisclosed sum.

Japex will divest its stake in the North Montney (NM) joint venture through its subsidiary Japex Montney.

The NM is responsible for shale gas development and production in the North Montney area of ​​British Columbia.

The shale gas project would have provided gas for the Pacific North West LNG project, which was cancelled in 2017 due to challenging environment and low prices.

In a press statement, Japex said: “Even after the decision not to proceed with the LNG project in July 2017 due to changes in the business environment, Japex has been working with PECL and its partners to maximise the value of the NM project by optimising the development plan.

　　However, Japex said its decision to exit the Canadian shale asset comes as it anticipates a more severe environment that surrounds the E&P business.

　　This is due to the prolonging Covid-19 effects, including aftermath structural changes, and accelerating the global decarbonisation, the firm noted.

　　In 2018, Japex framed the medium-term business plan, which involves transforming its E&P business structure to ensure sustainable growth even at $50-$60 a barrel oil price environments.

　　The firm said in a statement: “Based on the recognition, our E&P projects have been striving to improve their profitability by optimising the business portfolio, including the sale of the asset.
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　　Others firms involved in the Canadian shale gas project include Petronas Group (62%), Indian Oil Group (10%) and Petroleum Brunei Group (3%).