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

Venture Global’s Plaquemines LNG wraps up $4 billion notes offering

Venture Global's unit Plaquemines LNG has closed a $4 billion offering of senior secured notes.

Argentina’s Enarsa to spend $567 million on LNG purchases

Argentina's state-owned LNG importer, Energia Argentina (Enarsa), will spend $570 million to purchase 22 liquefied natural gas (LNG) cargoes from BP and TotalEnergies this year.

Shell’s LNG Canada to ship second cargo

Shell-led LNG Canada is expected to soon ship the second cargo of liquefied natural gas from the Kitimat facility on the west coast of Canada, according to shipping data.

More News Like This

Shell’s LNG Canada to ship second cargo

Shell-led LNG Canada is expected to soon ship the second cargo of liquefied natural gas from the Kitimat facility on the west coast of Canada, according to shipping data.

Venture Global, Petronas seal 20-year LNG SPA

US LNG exporter Venture Global LNG has signed a 20-year LNG supply contract with Malaysian energy giant Petronas for volumes from the CP2 project in Louisiana.

Shell ships first LNG Canada cargo

LNG giant Shell and its partners have shipped the first cargo produced at the LNG Canada facility in Kitimat, on the west coast of Canada.

Petronas, JOGMEC pen LNG cooperation deal

Malaysian energy giant Petronas and Japan Organization for Metals and Energy Security (JOGMEC) have signed a memorandum of cooperation to expand the collaboration framework in the liquefied natural gas sector, through a strategic LNG arrangement.