ITOCHU leads Japan Ohanet Oil & Gas Co., Ltd. (JOOG), in which ITOCHU Corporation holds a 35% interest along with the Govermment of Japan (50%) and Teikoku Oil Co., Ltd. (15%). In July 2000, JOOG and its joint venture partners became parties to a Risk Service Contract (RSC) with the Algerian national hydrocarbons exploration and exploitation company, Sonatrach, for the development of four gas / condensate reservoirs in the Ohanet region of Algeria. Under the RSC, JOOG holds a 30% interest in the Project.
The Ohanet Fields are located in the Illizi province of Algeria approximately 1,300 km south east of Algiers and 100 km west of the border with Libya. First production from the Ohanet Fields was achieved in October 2003 as scheduled and is currently producing condensate and LPG at 58,000 BOPD and sales gas of c. 600MMcf per day. The field's production over the next 12 years is expected to be in excess of 2.4 trillion cubic feet of pipeline quality gas, 81 million barrels of condensate, and 74 million barrels of LPG.
Under the RSC, JOOG and its partners are entitled to recover their investment, together with an agreed profit amount, over a target eight-year period from the start of production.
The monetary entitlement held by JOOG and its partners will be in the form of volumes of condensate, butane, and propane to be lifted from export points on the Algerian coast. (JOOG's liquid entitlement will be marketed to Japan through ITOCHU Corporation.)
The RSC has been terminated in October, 2011.
