Japanese oil and gas producer Inpex has sold all shares in its subsidiary Teikoku Oil (D.R. Congo) to Perenco Energies International and divested all its interests in the offshore block in the Democratic Republic of the Congo.
Inpex reported the sale on Wednesday. The company previously held a 32.28 per cent participating interest in the Offshore D. R. Congo Block through Teikoku Oil (D.R. Congo) and was engaged in the development and production of crude oil.
The firm acquired mining rights to this block in 1970 and began producing crude oil in 1975. Multiple oil fields were discovered since then and the block underwent development and production activities. This contributed to the sustainable expansion of Inpex’s upstream business.
In December 2017, a deal was reached with the country’s government to extend the duration of the concession agreement for this block for a period of 20 years from November 21, 2023, extending its life until November 2043.
The producing oil fields of the block are located off the western coast of the Democratic Republic of the Congo.
Inpex explained that the decision to sell its shares in the operation was undertaken due to a significant decline in productivity, which is expected, given that more than 45 years have passed since the start of production. The company added that from its asset portfolio optimization perspective, a lack of prospects for expanding the operations within the block and its vicinity also contribute to the decline.
Inpex claims the impact of this is minimal on its consolidated financial results and has already been factored into the forecasted consolidated financial results for the year ending on 31 December 2021.
The company intends to proactively engage in energy structure reforms towards the realization of a net-zero carbon society while fulfilling its responsibilities for the stable development and supply of energy.
In recent company news, Inpex and Osaka Gas reported their intention to launch a technical development business on the practical application of a CO2-methanation system toward the carbon neutralization of gas.