Japex sells stake in Canadian shale gas project to Petronas

Japan Petroleum Exploration Co (Japex) said it would sell its stake in a Canadian shale gas project to a unit of Malaysian energy giant Petronas.

Petronas Energy Canada, the operator of the North Montney shale gas project, will buy the 10 percent stake adding to the 62 percent stake it already has in the joint venture.

The project would have provided gas for the scrapped Pacific North West LNG project operated by Petronas.

“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 Petronas and its partners to maximize the value of the North Montney project by optimizing the development plan,” the firm said in a statement.

However, Japex said it expects the environment surrounding the E&P business to become “even more severe” due to the prolonging effects of the Covid-19.

Therefore, Japex has decided to sell all ownership interest in the joint jenture, with the “judgement that would be difficult to recover Japex Montney’s performance early.”

As a result of this transaction, Japex expects to record an extraordinary loss of about 493 million Canadian dollars ($406 million) in the consolidated financial results for the second quarter of the fiscal year ending March 31.

Japex added that all procedures related to this sale should complete by the end of June.

Most Popular

Another steam LNG carrier sold for demolition

An NYK-managed steam liquefied natural gas (LNG) carrier has been sold for demolition, according to brokers.

Canada approves Ksi Lisims LNG project

According to a statement on Monday, Julie Dabrusin, Minister of Environment and Climate Change, issued her decision under the...

Abaxx sees significant volume growth in its LNG futures

Abaxx Commodity Futures Exchange, a wholly owned subsidiary of Abaxx Technologies (CBOE:ABXX) has seen significant volume growth in its physically deliverable LNG futures during the past summer months, according to Abaxx Exchange Chief Commercial Officer Joe Raia.

More News Like This

Woodside, Petronas seal 15-year LNG SPA

Australia's Woodside has signed a long-term deal with Malaysia's Petronas to supply the latter with liquefied natural gas (LNG) from its global portfolio. The deal may include supplies from Woodside's Louisiana LNG project in the US.

Petronas says Bintulu LNG operations not affected after security threat

Operations at the giant Bintulu LNG plant in Sarawak remain uninterrupted following the Malaysian National Security Council’s announcement regarding a potential security risk, according to Malaysian energy giant Petronas.

LNG Canada sends tenth cargo

Shell-led LNG Canada has shipped the tenth cargo of liquefied natural gas from its Kitimat facility on the west coast of Canada.

Malaysia’s Petronas logs lower LNG sales in H1

Malaysian energy giant Petronas reported a decline in its liquefied natural gas (LNG) sales and net profit for the first half of this year compared to the same period last year.