Japan's Inpex closes on British Columbia shale gas joint venture

Aug. 8, 2012

A consortium led by Japan’s Inpex Corp. has closed on a transaction with Nexen Inc., creating a joint venture to develop unconventional shale gas assets in the Horn River, Cordova, and Liard basins in northeastern British Columbia.

Paula Dittrick

Nexen, which sold a 40% working interest in its British Columbia assets for $700 million, remains the operator with 60% interest (OGJ Online, Nov. 29, 2011).

The 40% is owned by Inpex Gas British Columbia Ltd. (IGBC), of which Inpex owns 82% and JGC Corp. owns 18% interest. JGC is an engineering contractor with project management capabilities in refining, gas processing, LNG, and petrochemicals.

Nexen and IGBC are continuing with completion activities on an 18-well pad in the Horn River basin, which is scheduled to come on stream during the fourth quarter. Nexen and IGBC plan to jointly appraise shale assets and investigate the feasibility of LNG exports.

Inpex already owns interests in LNG projects offshore Indonesia and Australia. In addition, Inpex is building a regasification terminal in Japan.

About the Author

Paula Dittrick | Senior Staff Writer

Paula Dittrick has covered oil and gas from Houston for more than 20 years. Starting in May 2007, she developed a health, safety, and environment beat for Oil & Gas Journal. Dittrick is familiar with the industry’s financial aspects. She also monitors issues associated with carbon sequestration and renewable energy.

Dittrick joined OGJ in February 2001. Previously, she worked for Dow Jones and United Press International. She began writing about oil and gas as UPI’s West Texas bureau chief during the 1980s. She earned a Bachelor’s of Science degree in journalism from the University of Nebraska in 1974.