PETRONAS Acquires JAPEX's Stake in the North Montney Shale Gas Project
Malaysian state-owned Petroliam Nasional Bhd (PETRONAS) has entered into an agreement with a subsidiary of Japan Petroleum Exploration Company Ltd. (JAPEX) to acquire its 10% ownership interest in their North Montney Joint Venture in British Columbia. The financial terms of the transaction have not been disclosed.
Upon completion, PETRONAS will hold a 72% operated interest in the project, with China Petrochemical Corp. (Sinopec Group) holding a 15% interest, Indian Oil Corporation Ltd. (IOCL) holding a 10% interest, and Brunei National Petroleum Company Sdn Bhd (Petroleum Brunei) holding the remaining 3%.
The North Montney Shale Gas project has approximately 800,000 acres of largely contiguous mineral rights located along the foothills of the Rocky Mountains in north-east British Columbia. The project contains approximately 15,000 identified drilling locations with extensive 3D seismic data, and multiple drilling rigs operating in the area. The development programs on the project area have a significant volume of shale gas assets, and the partners are currently focusing on the high economic potential area to maximize the value of the asset. Total proved + probable (2P) reserves attributable to the project are approximately 12 trillion cubic feet (Tcf) as of December 31st, 2019, while the gross average daily production stood at approximately 423.8 million cubic feet per day (MMcf/d) during 2019.
Tokyo-based JAPEX is engaged in the exploration and production of oil, natural gas, and other energy resources, and in contract services such as drilling and completion in Japan, Canada, the United States, Indonesia, Iraq, Russia, and the United Kingdom.
The transaction is subject to customary closing conditions, and is expected to be completed by June 2021.