Papua New Guinea / Upstream Gas and Condensate Development Project

June 12, 2014

Nippon Export and Investment Insurance

NEXI has decided to provide Overseas Investment Insurance for the acquisition of stakes in Papua New Guinea gas and condensate fields by Osaka Gas Co., Ltd. and its investment for the development.

As this acquisition and development project is expected to contribute to stable energy supply to Japan, NEXI's Investment and Loan Insurance for Natural Resources and Energy will be added.

Osaka Gas agreed with a subsidiary of Horizon Oil Limited ("Horizon") of Australia that Osaka Gas would participate in the PNG gas and condensate development project by acquiring part of the stakes in the gas and condensate fields held by Horizon. The stakes will be acquired through Osaka Gas Niugini Pty Ltd, an Australian company wholly owned by Osaka Gas Australia Pty Ltd, a subsidiary of Osaka Gas. NEXI's insurance support is provided following the PNG government approval for the development, granted on May 30, 2014.

Osaka Gas is also planning to consider feasibility of an LNG plant construction and operation project jointly with Horizon and other existing partners. When materialized, it will lead to LNG export to Japan.

NEXI will continue to provide a strong support to projects that are expected to contribute to stable resource supply to Japan and to overseas business development by Japanese companies.

Type of Insurance Overseas Investment Insurance (Investment and Loan Insurance for Natural Resources and Energy)
Percentage of Cover 100% (Political Risk)
Covered Risk Political Risk of Papua New Guinea
Tenor 3 years