Japan Oil, Gas and Metals National Corp., or Jogmec, late Tuesday said it will underwrite half of a $2.31 billion loan Inpex Corp. (1605.TO) needs to develop the Kashagan oil field in Kazakhstan.
An Inpex-led Japanese consortium has a 7.56% stake in the Kashagan project, which "is expected to have a huge impact on Japan's energy security," Jogmec said in a statement.
Kazakhstan's state oil and gas company KazMunaiGas and four international energy companies - Eni SpA (E), Total SA (TOT), Exxon Mobil Corp. (XOM) and Royal Dutch Shell PLC (RDSB.LN) - each has a 16.81% stake in the project while ConocoPhillips (COP) holds 8.4%. The Japanese consortium Inpex North Caspian Ltd. holds the smallest stake at Kashagan.
Jogmec owns 50% of Inpex North Caspian, while Inpex Corp. holds 45%. Mitsubishi Corp. and Japan Petroleum Exploration Co. hold 2.5% each.
Kashagan is estimated to hold recoverable reserves of 13 billion barrels of oil. The project, located in the northern part of Caspian Sea, was billed as the largest oil discovery in some 30 years when it was found in the late 1990s.
The Japanese consortium's share of the oil will be imported on a swap basis.