Reuters reports that the state-run Japan Oil, Gas and Metals National Corp (JOGMEC) said on Thursday it expects to provide about 16.3 billion yen ($198 million) of capital in 2011-2012 to Iraq’s Gharaf [Gharraf, Garraf] oilfield development project.
In return, JOGMEC said it would take a stake of less than 50 percent in Japan Petroleum Exploration’s (Japex) wholly owned subsidiary that is taking part in the project.
Malaysia’s state oil firm Petronas holds 45 percent of the oilfield development and production service project, Japex 30 percent, and Iraq 25 percent.
The consortium, which expects to invest up to $8 billion, expects oil production to start in 2012 at 50,000 barrels per day, rising to 230,000 bpd of plateau output from 2016.
In a statement, JOGMEC said: “It is expected that this project will contribute to strengthen and deepen a relationship with Iraq, as well as reinforce Japan’s energy security”.
(Sources: Reuters, JOGMEC)