LOS ANGELES, Feb. 25 -- Japan's Sumitomo Corp. acquired stakes in 10 oil and gas blocks off Louisiana as part of an effort to boost its presence in the US as a producer and retailer of natural gas.
The purchase is Sumitomo's latest in a string of acquisitions worldwide during the past year, all aimed at strengthening its position in the international gas business and contributing to its long-term growth.
The Japanese trading firm signed contracts valued at 15 billion yen with NCX Co., a Louisiana-based oil and gas exploration company, to acquire the US stakes, which include Blocks 39 and 41 in Breton Sound.
The 10 fields—nine production and one to be developed—are expected to yield 5,000 boe/d in 2006.
Sumitomo's purchase is its first acquisition of resource development rights in the US. It said it plans to acquire more of them to take advantage of rising demand for gas.