Idemitsu Kosan : Petroleum Norge to sell part of participating interests of Production Licenses in Barents Sea,Norway(PDF:254KB)
October 27, 2020 at 12:10 am
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October 20, 2020
Press Release
Company Name: Idemitsu Kosan Co.,Ltd.
Representative Director & Chief Executive Officer: Shunichi Kito
(Company Code: 5019, TSE, First Sect.) Contact person:
Munehiro Sekine, General Manager,
Investor Relations Office, Finance Department (TEL: +81-3-3213-9307)
Idemitsu Petroleum Norge to sell part of participating interests of Production Licenses
in Barents Sea, Norway
Idemitsu Kosan Co.,Ltd. (the "Company") is pleased to announce that Idemitsu Petroleum Norge AS*1 (Head Office: Oslo Norway; Managing Director: Futoshi Tsuneyama), a wholly owned subsidiary of Idemitsu Snorre Oil Development Co., Ltd. (Head Office: Chiyoda-ku, Tokyo; President: Jun Miki)*2, has entered into an agreement with Lundin Energy Norway AS (Head Office: Oslo Norway), to sell a 10% participating interest in production licenses PL 537 & PL 537B including Wisting discovery and a 15% participating interest in production licenses PL 609, PL 609B, PL 609C, PL 609D and PL 851 including Alta discovery in the Barents Sea, Norway.
*1: Shareholder: Idemitsu Snorre Oil Development Co., Ltd. (100 %)
Idemitsu Petroleum Norge AS acquired a 20% participating interest in PL537 & PL537B, and a 30% participating interest in PL 609, PL 609B, PL 609C, PL 609D and PL 851 through the Norwegian licensing rounds. The Wisting and Alta discoveries were made in PL 537 in 2013 and PL 609 in 2014 respectively. Studies are ongoing with a view to progressing these discoveries to development.
The transaction is part of the Company's long-term business strategy, and capital and cash management plan. It will reduce development cost exposure in future. A cash consideration of 125 MUSD is to be paid on completion of the transaction.
Change of license share in the production licenses in Barents Sea
PL 537・PL 537B
License Shares
Company Name
Before Transaction
After completion of
Transaction
Idemitsu Petroleum Norge AS
20%
10%
Lundin Energy Norway AS
-
10%
PL 609・PL 609B・PL 609C・PL 609D・PL 851
License Shares
Company Name
Before Transaction
After completion of
Transaction
Idemitsu Petroleum Norge AS
30%
15%
Lundin Energy Norway AS
40%
55%
2. Summary of Lundin Energy Norway AS
(1)
Name
Lundin Energy Norway AS
(2)
Location
Strandveien 4, 1366 Lysaker, Oslo, Norway
(3)
Main Business Activities
Exploration, production and sale of petroleum in Norway
(4)
Date established
24 October 2003
(5)
Parent Company
Lundin Energy AB (Listed on the Stockholm Exchange Market)
Capital relations
There is no relevant information.
Relationship between the
Personal relations
There is no relevant information.
Business relations
There is no relevant information.
(6)
listed company and the
Related parties to
There is no relevant information.
concerned company
the relevant
situation
3. Schedule
Date of contract
October 2, 2020 (Subject to approval of the board of Idemitsu Kosan
(1)
Co.,Ltd.)
(2)
Date of board of directors'
October 20, 2020
decision
(3)
Date of completion of the
Undecided*
transaction
*Note: Completion of the transaction is subject to the approval of the Norwegian authorities.
4. Forecasts
Due to the date of completion of the transaction being subject to the approval of the Norwegian authorities, the impact on the Company's consolidated performance for this financial year is pending at the present time. Any further information concerning this matter that ought to be released, will be promptly disclosed.
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Idemitsu Kosan Co. Ltd. published this content on 20 October 2020 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on 27 October 2020 00:09:09 UTC
Idemitsu Kosan Co., Ltd. is specialized in the production and refining of petroleum products. Net sales break down by category as follows:
- refining of petroleum products (78.8%): fuels, lubricants, kerosene, etc. At the end of March 2019, the group operated 6 refineries in Japan;
- manufacturing of petrochemical products (12.5%): activity carried out in 2 production sites located in Japan;
- exploration and production of oil, coal, uranium and geothermal resources (7%);
- other (1.7%).
Net sales are distributed geographically as follows: Japan (69.8%), Asia-Pacific (19.2%), North America (7.2%), Europe (2.4%) and others (1.4%).