Offshore staff
STAVANGER, Norway — Japan Petroleum Exploration Co. (JAPEX) has agreed to form a joint venture with Norwegian E&P company Longboat Energy.
This will lead to Longboat’s Norwegian subsidiary being renamed Longboat JAPEX Norge, with the aim of developing the entity into a Norwegian-focused independent.
JAPEX would provide up to $100 million of financing, including up to $30 million if this summer’s Velocette exploration well in the Norwegian Sea is successful.
OMV operates the surrounding license PL1016; Longboat and INPEX are the other partners.
Velocette is a gas-condensate prospect targeting Cretaceous Nise turbidite sands on the eastern flank of the Utgard High. It is located about 45 km from the Equinor-operated Aasta Hansteen Field, and there are follow-up opportunities elsewhere in the license.
JAPEX, founded in 1955, has proven reserves of 159 MMboe and production last year of 58,500 boe/d. Its largest shareholder is the Japanese government (35%) via the Minister of Economy, Trade and Industry of Japan.
Longboat JAPEX Norge will pursue growth through the acquisition of interests in development projects and will target drilling of one to three exploration and appraisal wells per year.
According to Longboat Energy, Norway continues to offer an attractive regulatory framework, with a recent change in the Petroleum Tax System improving the economics of new development projects.
This allows for immediate expensing of investments, 71.8% repayment of all losses in the following year (compared to the previous 72% of exploration losses only) and a corporate tax at 6.2% carried forward against future profits.
Addressing the JAPEX announcement, Welligence Energy Analytics posted on LinkedIn: "The deal is mutually beneficial. JAPEX gets a pre-qualified partner with geological know-how and commercial contacts in an attractive upstream regime. Longboat gets the financial backing to compete in a hot M&A market and progress developments in case of exploration success at Velocette, Oswig and Lotus."
05.03.2023
