Natural Resources Development Financing for Kashagan Oil Field in the North Caspian Sea
To Help Diversify Japan’s Energy Supply Sources

• Region: Asia
• Energy and Natural Resources
• Overseas Investment Loans

1. The Japan Bank for International Cooperation (JBIC; President & CEO: Hiroshi Watanabe)^*1 signed on March 1 a loan agreement totaling up to 693 million US dollars with INPEX North Caspian Sea, Ltd. (the Company), in which INPEX Corporation and others have equity stakes.  This is the second loan that JBIC provided for the same project following the one extended in October 2005^*2 , and is cofinanced with the private financial institutions (Mizuho Corporate Bank, Bank of Tokyo-Mitsubishi UFJ and Sumitomo Mitsui Banking Corporation).
    
2. This loan will finance the development of the Kashagan offshore oil field in the Kazakhstan-controlled area of the North Caspian Sea.  The oil field is being developed by an international consortium formed by the Company, ExxonMobil (US), KazMunayGas (Kazakhstan), Royal Dutch Shell (Britain and Netherlands), Total (France) and ConocoPhillips (US).
    
3. Since acquiring a participatory interest in the North Caspian Sea Block in September 1998, the Company has participated in developing the oil field as a member of the international consortium.  Crude oil production will begin at the end of 2012, and after phased development, its output is eventually expected to reach a peak volume of 1.5 million barrels a day.
    
4. Embracing large-scale oil fields such as Kashagan and Azeri-Chirag-Gunashli (ACG) oil fields, the Caspian Sea is drawing growing attention from the world as a new energy source located outside the Middle East. To date, JBIC has supported projects in which Japanese firms participate, including the BTC pipeline construction and ACG oil field development projects, by providing loans.  Following these previous loans, the new loan will serve to diversify energy supply sources for Japan, which is heavily dependent on the Middle East for its oil, as part of JBIC's multi-faceted support for energy resource development in the Caspian region.

Note

1. *1 JBIC is the international wing of the Japan Finance Corporation (JFC; Governor: Shosaku Yasui).
2. *2 See Press Release of October 27, 2005.