JOGMEC Provides Equity Financing in Garraf Field

Japan Oil, Gas and Metals National Corporation (JOGMEC, President: Hirobumi Kawano) decided to provide finance to JAPEX Garraf Ltd., a subsidiary of Japan Petroleum Exploration Co. Ltd. (JAPEX, President: Osamu Watanabe) for its participation in developing the Garraf oil field in Iraq.

After the successful bidding in Iraq’s second licensing round in December 2009, JAPEX became a party to the Development and Production Service Contract (DPSC) for Garraf Contract Area in January 2010. JAPEX Garraf Ltd. holds 30% participating interest under the DPSC where PETRONAS is operator with 45% interest and the state partner, North Oil Company, owns the remaining 25%. The DPSC came into effect in February 2010.

In recent years, JOGMEC has made itself ready to financially support Japanese companies engaging in E&P activities in Iraq. The Garraf project is the first accomplishment of JOGMEC’s financial support to the Japanese E&P activities in Iraq.

It is expected that this project will contribute to strengthen and deepen a relationship with Iraq, as well as reinforce Japan’s energy security.