Japex Operations in Iraq

= History =

Japex’s relationship with the Iraqi Ministry of Oil dates back to March 2005 when they began to conduct evaluation studies of undeveloped oil fields jointly with the Ministry’s engineers. Since 2007, Japex has worked with more than 450 trainee engineers dispatched from the Ministry of Oil. In 2008 Japex supplied 3D seismic survey equipment and software for the Ministry’s surveys of the Gharraf oil field.

= Activities and Contracts =

Garraf
Together with Malaysian Petronas, Japex signed a contract in 2009 to explore and produce oil from the Garraf oil field. The consortium is expected to invest up to $8 billion in the field and will be paid a remuneration fee of $1.49 a barrel under the 20-year long service contract. Japex will hold a 30% stake, Petronas a 45% stake and Iraq’s South Oil Company will hold the remaining 25% stake in the field.

In February 2011, Reuters reported that state-owned Japan Oil, Gas and Metals National Corporation (JOGMEC) would provide about $198 million of capital to the development of the Gharraf oilfield project. In return, JOGMEC would take a stake of less than 50% in Japex' wholly owned subsidiary, Japex Garraf Limited. -

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