TOKYO, Japan — Japan Oil, Gas and Metals National Corp. (JOGMEC) will provide equity financing to Cosmo E&P Albahriya Ltd., a wholly owned subsidiary of Cosmo Energy Exploration & Production Co. Ltd., according to a recent JOGMEC news release.
Cosmo Albahriya was incorporated on Jan. 4, 2021, to explore for oil and gas and to operate Abu Dhabi’s offshore Block 4 Concession. They signed the exploration concession agreement on Feb. 10, 2021, with Abu Dhabi’s Supreme Council for Financial and Economic Affairs and Abu Dhabi National Oil Co. (ADNOC) for the exploration rights of offshore Block 4 offered in the second Abu Dhabi Block Bid Round in the United Arab Emirates (UAE).
JOGMEC will provide equity financing in return for up to 49% of the share capital of Cosmo Albahriya. Cosmo will retain the majority stake in Cosmo Albahriya, which will continue to be the concession operator.
Cosmo’s other affiliate, Abu Dhabi Oil Co. Ltd. (ADOC), has been dedicated to crude oil development and production of the Mubarraz concession area for more than half a century. As its concession area lies adjacent to offshore Block 4, COSMO looks forward to developing offshore Block 4 in a cost-effective and environmentally friendly manner by potentially utilizing its experience and existing infrastructure.
JOGMEC, including its predecessor Japan National Oil Corp., has been financially and technically supporting Japanese companies operating in Abu Dhabi, including ADOC at the initial exploration stage to discover Mubarraz oil field in 1969. Independently, JOGMEC has strengthened the collaborative relationship with ADNOC for decades through technical cooperation and human resource development with respect to the Abu Dhabi energy sector.
JOGMEC said the offshore Block 4 exploration concession has the potential to benefit from synergies and reinforce the cost-competitiveness of Cosmo’s upstream activities in Abu Dhabi, and it can contribute to the stable crude supply to Japan from Abu Dhabi. This project will further expand the bilateral relationship between the UAE and Japan.