Japanese upstream firm Inpex is partnering refiner Idemitsu to develop and operate oil and gas fields in Norway, after taking a majority stake in Idemitsu Snnore Oil Development (ISD).
Inpex has agreed with Idemitsu and Osaka Gas Summit Resources (OSR), a 70:30 joint venture between Japanese utility Osaka Gas and trading house Sumitomo, to acquire a 50.5pc stake in ISD by buying 1pc from Idemitsu and all 49.5pc from OSR. The transaction is scheduled to be completed in early 2022, subject to the approval of the Norwegian government and other conditions.
Osaka Gas and Sumitomo plan to replace assets to optimise their portfolio. Osaka Gas aims to use undisclosed revenue from the sale of its ISD shares to expand natural gas and renewable energy sources, it said.
ISD currently owns 11 oil and gas assets, including the Norwegian state-controlled Equinor-led Snorre project, as well as interests in multiple discovered but undeveloped oil and gas fields and exploration licences through its wholly-owned Idemitsu Petroleum Norge (IPN).
Increasing use of decarbonisation technologies in oil and gas field operations in Norway has attracted the investment of Inpex. The Snorre project is expected to get 35pc of its entire power from the Hywind Tampen floating wind farm currently being built, while projects are being considered to cut CO2 emissions from oil and gas production by using power supplied from onshore hydropower plants.
Inpex has carried out previous oil and gas exploration in Norway through its wholly-owned Norwegian subsidiary Inpex Norge, which it aims to integrate with IPN in the future.
