• 6 minutes Trump vs. MbS
  • 11 minutes Can the World Survive without Saudi Oil?
  • 15 minutes WTI @ $75.75, headed for $64 - 67
  • 2 hours Satellite Moons to Replace Streetlamps?!
  • 21 hours US top CEO's are spending their own money on the midterm elections
  • 1 hour EU to Splash Billions on Battery Factories
  • 7 hours U.S. Shale Oil Debt: Deep the Denial
  • 7 hours The Balkans Are Coming Apart at the Seams Again
  • 23 hours OPEC Is Struggling To Deliver On Increased Output Pledge
  • 7 hours The Dirt on Clean Electric Cars
  • 19 hours Uber IPO Proposals Value Company at $120 Billion
  • 9 hours 47 Oil & Gas Projects Expected to Start in SE Asia between 2018 & 2025
  • 21 hours A $2 Trillion Saudi Aramco IPO Keeps Getting Less Realistic
  • 1 day Petrol versus EV
  • 1 day U.N. About Climate Change: World Must Take 'Unprecedented' Steps To Avert Worst Effects
  • 1 day 10 Incredible Facts about U.S. LNG
U.S-Saudi Clash Could Spell Disaster For OPEC

U.S-Saudi Clash Could Spell Disaster For OPEC

The Khashoggi case could have…

Goldman Sachs: This Is The Next Big Risk For Oil

Goldman Sachs: This Is The Next Big Risk For Oil

Goldman Sachs commodities expert Jeffrey…

Japan Continues Acquisition Of US Oil And Gas Assets

Gulf of Mexico

Japanese trading group Mitsui & Co., Ltd said on Monday that it had reached a deal with Royal Dutch Shell (NYSE:RDS.A) to buy a 20-percent working interest in four blocks in the Gulf of Mexico owned by a Shell subsidiary.

The blocks are located south-southeast of New Orleans, offshore Louisiana, and are estimated to have recoverable resources of more than 100 million barrels of oil equivalent, Mitsui said, without unveiling the price of the deal.

According to the Japanese company, “production of crude oil and gas would utilize the existing near field infrastructure, presenting opportunities for early commercialization at reduced development costs.”

Mitsui sees further exploration potential in the blocks, which may lead to a build-up of reserves.

The Japanese trader aims to build a portfolio of high-quality, low-cost reserves, and considers its upstream energy business a core business area.

Mitsui and other Japanese firms are not new players in the U.S. oil and gas assets.

Earlier this year, a Japanese company, Tokyo Gas, acquired 25 percent in an Eagle Ford shale gas asset when low commodity prices allowed Tokyo Gas to acquire it on the cheap.

Mitsui and another Japanese company, Marubeni, invested around US$1 billion each in Eagle Ford in 2011 and 2012.

Related: The Wider Ramifications Of The OPEC Deal

Mitsui is also invested in the Marcellus shale gas play and via joint development with its partners the Japanese group has secured around 135,000 net leasehold acres, and has participated in around 1,100 wells in the shale play.

More Japanese firms are looking to buy oil and gas assets around the globe, taking advantage of the depressed energy prices. The Japanese government arm Jogmec, for example, is flush with cash, having arranged financial backing totaling US$5.2 billion annually for oil and gas M&A.

Jogmec also helps foreign governments conduct geophysical surveys over prospective areas, which gives the Japanese firm a sort of “sneak peak” into asset prospects around the world.

By Tsvetana Paraskova for Oilprice.com

More Top Reads From Oilprice.com


x

Join the discussion | Back to homepage

Leave a comment

Leave a comment

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