JOGMEC Provides Equity Financing to INPEX’s Kashagan Oil Field Development in North Caspian Sea, Republic of Kazakhstan

Located in the Kazakhstan sector of the Caspian Sea, the Kashagan field with approximately 9-13 billion barrels of recoverable oil, known as the world’s largest discovery in the past four decades, has achieved stable production since October 2016. The Kashagan project is operated by North Caspian Operating Company (NCOC), on behalf of a consortium of national and international oil companies including INPEX.

The Phase I development, or the Experimental Program, is still underway to ramp up oil production to a capacity of 370,000 barrels per day at the earliest possible. Beyond the Experimental Program, NCOC plans future development phases to gradually and significantly increase output volumes.

Since the establishment of INCS in 1998, JOGMEC, as Japan National Oil Corporation until 2005, has been continuing its financial supports to INCS, including equity investment covering exploration expenditures and gurantee for the initial development loan. Grant of JOGMEC development equity finance will allow INCS to raise capital required for further Kashagan development to boost production. This is the first-ever development investment since the amendement of the JOGMEC Law enacted in November 2016 where JOGMEC functions were enhanced to enable it.

JOGMEC’s continued supports to INCS will contribute to diversifying and increasing crude supply to Japan for a longer time through the further expansion of giant Kashagan.

Background Information

1. Corporate Data: INPEX North Caspian Sea Ltd.

Date of Establishment August 6, 1998
Head Office Minato-ku, Tokyo, Japan
President Mr. Toshiaki Kitamura
Shareholders INPEX Corporation 51%

2. Consortium Partners

INPEX North Caspian Sea Ltd 7.56%
KMG(KazMunayGas) 16.87%
Eni 16.81%
ExxonMobil 16.81%
Shell 16.81%
Total 16.81%
PetroChina 8.33%

* Operator: North Caspian Operating Company (“NCOC”), which is a joint operating company established by all consortium partners.

3. JOGMEC Assistance

Date of Approval February 28, 2018
Estimated Amount of Equity Financing approximately JPY 60Billion

Note:  Approval has been made in accordance with JOGMEC’s technical, economic, and business-environment criteria and the consent from the Minister of Economy, Trade and Industry has been obtained.

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