October 7, 2022

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JOGMEC to offer equity finance to Cosmo’s oil exploration in Abu Dhabi

A car or truck moves out from a Cosmo Power Holdings’ Cosmo Oil company station in Tokyo, Japan, December 16, 2015. REUTERS/Yuya Shino

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TOKYO, June 13 (Reuters) – Condition-run Japan Oil, Gas and Metals Nationwide Corp (JOGMEC) reported on Monday it will provide equity funding to the new oil and gasoline exploration undertaking by Japan’s Cosmo Electrical power Holdings Co Ltd (5021.T) in Abu Dhabi, without disclosing the sum.

UAE’s Abu Dhabi Nationwide Oil Company (ADNOC) (ADNOC.UL) awarded the exploration rights for Abu Dhabi’s offshore block 4 to Cosmo’s subsidiary, Cosmo E&P Albahriya Ltd, in February, 2021.

JOGMEC will offer fairness funding in return for up to a 49% stake in the subsidiary, while Cosmo will retain the vast majority stake in the unit which is the concession operator, JOGMEC reported in a assertion.

Cosmo has been included in crude oil growth and creation of the Mubarraz concession place in Abu Dhabi for more than 50 % a century and it aims to establish the block 4 in cost-successful fashion by using existing infrastructure as the concession space lies adjacent to the block 4.

The block 4 exploration concession has the potential to reinforce the expense-competitiveness of Cosmo’s upstream activities in Abu Dhabi, and can lead to the secure crude provide to Japan, JOGMEC mentioned.

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Reporting by Yuka Obayashi, modifying by Ed Osmond

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