Japan Petroleum Exploration announced on Wednesday that it plans to quadruple its oil and gas production over the next decade by investing 1.16 trillion yen ($7.3 billion) in exploration and production, mainly in the United States.
The company, which recently acquired Verdad Resources Intermediate Holdings for $1.3 billion in its largest deal, will allocate over half of its 1.1 trillion yen budget for overseas E&P to the United States, said President Michiro Yamashita.
“We see more than half of the investment going to the United States, with about 200 billion yen for developing Verdad assets, while considering new acquisitions,” Michiro Yamashita said.
The rest will be divided almost equally between Norway and Southeast Asia, particularly Indonesia, he added.
The importance of ensuring a stable supply of fossil fuels for national security was reiterated by the Iranian crisis, said Michiro Yamashita, noting that the latest strategy reflects a global shift towards a pragmatic approach that meets the growing energy demand while advancing decarbonization.
However, the new plan does not consider the impact of the crisis in the Middle East, Michiro Yamashita clarified.
Japex aims to increase its net profit to 100 billion yen by fiscal 2035, up from 45 billion yen for fiscal 2025, by investing a total of 1.5 trillion yen in growth areas over the next ten years, with a focus on E&P and its carbon capture, utilization, and storage activities.
The company plans to increase its oil and gas production to 180,000 barrels of oil equivalent per day by fiscal 2035, up from 45,000 barrels of oil equivalent per day currently, and to store 1.5 to 2 million metric tons of carbon dioxide per year by fiscal 2031, aiming for a cumulative total of 8 million tons or more by fiscal 2035.
Japex also aims to increase return on equity to 12% by fiscal 2035, up from 6.7% in fiscal 2025.
(1 $ = 159.3300 yen)
