Japan's Inpex gains full control of company that owns stake in ACG project

BAKU. March 3 (Interfax) - Japanese oil and gas corporation Inpex Corp. has increased its stake in Inpex South West Caspian Sea Petroleum Co., Ltd. (ISWCS), which owns 9.31% in the Azeri-Chirag-Gunashli (ACG) block development project in the Azerbaijani sector of the Caspian Sea.

According to Inpex, having previously owned 51% of ISWCS, it acquired the remaining 49% stake from the Japanese Economy, Trade and Industry Ministry.

Inpex signed a share purchase agreement for the acquisition of 49% of the shares of ISWCS held by the Japanese Economy, Trade and Industry Ministry through a public tender, and as a result of this transaction ISWCS will become a 100% subsidiary of Inpex, the company said.

The corporation holds a participating interest in the ACG project through ISWCS, it said.

According to Inpex, the ACG project is a high-quality asset from which the company has been receiving stable profit and cash flow for over 20 years, and this additional acquisition of ISWCS shares is expected to further strengthen its earnings base, it said.

Inpex said that it will continue work to maximize the project's value, including maintaining production levels in the contract area and expanding proven reserves.

Inpex is Japan's largest exploration and production company, engaged in the development and operation of oil and gas projects worldwide.

The contract for the development of the Azeri, Chirag and deep-water part of the Gunashli fields was signed in 1994. Its term was set to expire in 2024. However, in September 2017, a new contract was signed which is valid until 2049.

Under the new contract, the participating interests of the parties in the project are as follows: BP plc - 30.37%, the State Oil Company of the Azerbaijani Republic (SOCAR) - 31.655%, Hungary's MOL - 9.57%, the U.S. company ExxonMobil - 6.79%, India's ONGC Videsh - 2.925%, Japan's Inpex Corp. - 9.31% and Itochu Oil - 3.65% and Turkey's TPAO - 5.73%.