JX Nippon, Petronas Sign PSC

JX Nippon Oil & Gas Exploration Corp has entered into a Production Sharing Contract (PSC) for Deepwater Block 2F, Sarawak with PETRONAS, the national oil company of Malaysia, through its subsidiary, JX Nippon Oil & Gas Exploration (Offshore Malaysia), to be effective from September 19, 2013.

JX Nippon will hold a 40% interest and will conduct exploration activity as the operator at Deepwater Block 2F, which is JX Nippon's 6th project in Malaysia.

Partners in Deepwater Block 2F are: JX Nippon Oil & Gas Exploration (Offshore Malaysia) 40%; PETRONAS Carigali 40%; GDF Suez E&P Malaysia 20%.

In Malaysia, JX Nippon is operator for Block SK10, offshore Sarawak which is now in the 10th year of gas production and studying further development.

The Company is also the operator carrying out exploration activities in Block SK333 onshore Sarawak and Deepwater Block R offshore Sabah.

In Block SK333, accumulation of oil and gas were confirmed at Adong Kecil West-1 well which was drilled in 2012 and JX Nippon is currently conducting detailed reserves evaluation. In addition, JX Nippon is participating as non-operator in gas production activities in Block SK8 and also as non-operator in exploration activities in Block PM308A offshore Peninsular Malaysia.