• 2 hours WTI At 7-Month High On Supply Optimism, Kurdistan Referendum
  • 9 hours Permian Still Holds 60-70 Billion Barrels Of Recoverable Oil
  • 14 hours Petrobras Creditors Agree To $6.22 Billion Debt Swap
  • 18 hours Cracks Emerge In OPEC-Russia Oil Output Cut Pact
  • 22 hours Iran Calls On OPEC To Sway Libya, Nigeria To Join Cut
  • 23 hours Chevron To Invest $4B In Permian Production
  • 1 day U.S.-Backed Forces Retake Syrian Conoco Gas Plant From ISIS
  • 1 day Iraq Says Shell May Not Quit Majnoon Oilfield
  • 4 days Nigerian Oil Output Below 1.8 Million BPD Quota
  • 4 days Colorado Landfills Contain Radioactive Substances From Oil Sector
  • 4 days Phillips 66 Partners To Buy Phillips 66 Assets In $2.4B Deal
  • 4 days Japan Court Slams Tepco With Fukushima Damages Bill
  • 4 days Oil Spills From Pipeline After Syria Army Retakes Oil Field From ISIS
  • 4 days Total Joins Chevron In Gulf Of Mexico Development
  • 4 days Goldman Chief Urges Riyadh To Get Vision 2030 Going
  • 4 days OPEC Talks End Without Recommendation On Output Cut Extension
  • 4 days Jamaican Refinery Expansion Stalls Due To Venezuela’s Financial Woes
  • 5 days India In Talks to Acquire 20 Percent Of UAE Oilfield
  • 5 days The Real Cause Of Peak Gasoline Demand
  • 5 days Hundreds Of Vertical Oil Wells Damaged By Horizontal Fracking
  • 5 days Oil Exempt In Fresh Sanctions On North Korea
  • 5 days Sudan, South Sudan Sign Deal To Boost Oil Output
  • 5 days Peruvian Villagers Shut Down 50 Oil Wells In Protest
  • 5 days Bay Area Sues Big Oil For Billions
  • 5 days Lukoil Looks To Sell Italian Refinery As Crimea Sanctions Intensify
  • 6 days Kurdistan’s Biggest Source Of Oil Funds
  • 6 days Oil Prices On Track For Largest Q3 Gain Since 2004
  • 6 days Reliance Plans To Boost Capacity Of World’s Biggest Oil Refinery
  • 6 days Saudi Aramco May Unveil Financials In Early 2018
  • 6 days Has The EIA Been Overestimating Oil Production?
  • 6 days Taiwan Cuts Off Fossil Fuels To North Korea
  • 6 days Clash In Oil-Rich South Sudan Region Kills At Least 25
  • 6 days Lebanon Passes Oil Taxation Law Ahead Of First Licensing Auction
  • 7 days India’s Oil Majors To Lift Borrowing To Cover Dividends, Capex
  • 7 days Gulf Keystone Plans Further Oil Output Increase In Kurdistan
  • 7 days Venezuela’s Crisis Deepens As Hurricane Approaches
  • 7 days Tension Rises In Oil-Rich Kurdistan
  • 7 days Petrobras To Issue $2B New Bonds, Exchange Shorter-Term Debt
  • 8 days Kuwait Faces New Oil Leak Near Ras al-Zour
  • 8 days Sonatrach Aims To Reform Algiers Energy Laws
5 Big Gainers In Oil & Gas This Week

5 Big Gainers In Oil & Gas This Week

Energy stocks have been among…

James Burgess

James Burgess

James Burgess studied Business Management at the University of Nottingham. He has worked in property development, chartered surveying, marketing, law, and accounts. He has also…

More Info

Japanese Firm Buys 25 Percent State in Eagle Ford Field in Texas

Oil Well

Japanese energy major Tokyo Gas is set to acquire a 25 percent stake in an American shale gas field, allowing the firm to take advantage of low commodity prices that have left the asset underpriced.

The Eagle Ford —a major source of shale gas in the United States—will be bought for $48 million in early June from the American company VirTex Producing Co., which declined to provide a breakdown of the deal, according to Reuters.

Subsequent drilling would bring the price up to almost $77 million, the United Kingdom-based agency said.

The field will provide 200,000 tonnes per year of liquefied natural gas (LNG) for 20 years, Tokyo Gas said.

The same company spent around five million dollars to acquire another Texan shale gas field called the Barnett basin in 2013.

The Barnett purchase caused Tokyo Gas to report severe losses on the project twice due to falling energy prices.

Hisashi Nakamura, the company's senior general manager of global business department, told Reuters after a briefing that the firm will consider buying more U.S. stakes in future, despite previous losses.

"We would look for more deals if there are good ones, but only the cost-competitive projects that are profitable even at low prices would survive, so they are not found everywhere," he said.

Related: Big Oil Betting On Another Price Jump With Refinery Sales

Two other Japanese firms, Marubeni and Mitsui & Co., invested around one billion dollars each in Eagle Ford during the 2011-12 fiscal period.

Japan is the world’s largest importer of natural gas, according to a recent report by The Wall Street Journal.

The government has been leading efforts to secure the East Asian nation’s status as a trading hub for LNG in order to hold more influence in global energy markets.

By James Burgess of Oilprice.com

More Top Reads From Oilprice.com:



Join the discussion | Back to homepage

Leave a comment

Leave a comment

Oilprice - The No. 1 Source for Oil & Energy News