#Japan #Tokyo #Petronas #Idemitsu Kosan #SK earthon

Idemitsu Kosan Expands Its Horizons in Southeast Asia

Idemitsu Kosan Co., Ltd., based in Chiyoda, Tokyo, has made a significant move into the oil and gas sector by entering into an agreement to acquire interests in two exploration blocks located offshore Sarawak, Malaysia, namely SK427 and the Ketapu Cluster. This expansion into the ASEAN region is marked by the company's acquisition of a 40% stake from South Korea's SK earthon Co., Ltd. Additionally, the company has signed a product sharing contract with Malaysian state-owned oil and gas giant Petroliam Nasional Berhad (PETRONAS), and the Sarawak state-owned Petroleum Sarawak Exploration and Production Sdn. Bhd. (PSEP).

The newly acquired interests allow Idemitsu to engage in the exploration, development, and production of oil and gas within these blocks, significantly enhancing their operational footprint in the region. Given the historical context of oil and gas discoveries in the area, there is a growing optimism regarding the potential of these blocks, particularly as multiple promising geological structures have been identified through underground exploration data gathered in 2023. The company plans to commence drilling exploratory wells to further assess the development phase of these resources.

The acquisition was managed via Idemitsu Sarawak Resource Development Co., Ltd., a subsidiary of Idemitsu. In a strategic move to ease the financial burden associated with exploration activities, Idemitsu expects to receive investments from the Japan Oil, Gas and Metals National Corporation (JOGMEC), which will cover up to 50% of the exploration costs incurred by Idemitsu Sarawak.

Idemitsu's medium-term business plan emphasizes a commitment to contribute toward achieving a carbon-neutral society by 2050 while ensuring a stable energy supply. Developing oil and gas fields in Southeast Asia is deemed crucial for Japan's energy security and is positioned as a primary initiative towards achieving the company's environmental goals. By participating in PETRONAS's ongoing oil and gas development efforts in Malaysia, Idemitsu is setting the stage for potentially larger activities in oil and gas exploration within the region, as well as exploring opportunities related to carbon capture and storage (CCS) technologies.

Overview of the SK427 Block

• - Block Name: SK427
• - Area: Approximately 3,324 km²
• - Water Depth: 10-50m
• - Partners and Interest Ratio:

- SK earthon: 45% (Operator)
- PSEP: 15%
- Idemitsu Sarawak: 40%

Overview of the Ketapu Cluster Block

• - Block Name: Ketapu Cluster
• - Area: Approximately 27 km²
• - Water Depth: 10-50m
• - Partners and Interest Ratio:

- SK earthon: 45% (Operator)
- PSEP: 15%
- Idemitsu Sarawak: 40%

With this strategic acquisition, Idemitsu Kosan is not only expanding its operational scope but also positioning itself to capitalize on emerging technologies for sustainable energy solutions, thus aligning with global environmental initiatives while fulfilling domestic energy demands.

For more information, please reach out to:
Idemitsu Kosan Co., Ltd. Public Relations Department
Idemitsu Contact Information