TOKYO : State-run Japan Oil, Gas and Metals National Corp said on Monday it will provide equity financing to the new oil and gas exploration project by Japan's Cosmo Energy Holdings Co Ltd in Abu Dhabi, without disclosing the sum.
UAE's Abu Dhabi National Oil Company awarded the exploration rights for Abu Dhabi's offshore block 4 to Cosmo's subsidiary, Cosmo E&P Albahriya Ltd, in February, 2021. JOGMEC will provide equity financing in return for up to a 49 per cent stake in the subsidiary, while Cosmo will retain the majority stake in the unit which is the concession operator, JOGMEC said in a statement.
Cosmo has been involved in crude oil development and production of the Mubarraz concession area in Abu Dhabi for more than half a century and it aims to develop the block 4 in cost-effective manner by utilizing existing infrastructure as the concession area lies adjacent to the block 4. The block 4 exploration concession has the potential to reinforce the cost-competitiveness of Cosmo's upstream activities in Abu Dhabi, and can contribute to the stable crude supply to Japan, JOGMEC said.