Japex exits North Montney shale gas project
Japan Petroleum Exploration (Japex) has sold its 10% stake in the North Montney shale gas project in Canada to the operator Petronas, the company said on May 13.
Japex said it was exiting the project due to uncertainty caused by the ongoing COVID-19 pandemic. Japex bought the stake in the project in 2013. All procedures of this sale are expected to be completed by the end of next month.
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“The environment surrounding the E&P business is expected to become even more severe due to the prolonging effects of the COVID-19 since early last year, including the structural changes by the new normal after the COVID-19 and accelerating the global decarbonisation,” it said.
As a result of this transaction, Japex expects to record an extraordinary loss of approximately C$493mn ($406mn) in the consolidated financial results for the second quarter of the fiscal year ending March 31, 2022.
Meanwhile, the company in a separate statement said that it is committing to net-zero scope 1 and 2 emissions by 2050. It will also be strengthening the line of business that contributes to the reduction of supply chain emissions.
Japex said it wants to turn carbon neutral into a profitable business based on CO2 injection and storage technology. It will expand participation in renewable energy projects and work for a stable supply of oil and gas.