INPEX's $700 Million Acquisition of Interest in Nexen's Shale Gas Assets
Advised INPEX on the $700 million acquisition of a 40% participating interest in the shale gas assets of Nexen Inc.
Matter Value: CAD 700,000,000
Tuesday, 7 August 2012
On August 7, 2012, INPEX Corporation (INPEX), Japan’s largest oil & gas company, announced the completion of its $700 million acquisition of a 40% participating interest in the shale gas projects of Nexen Inc. To promote INPEX’s first shale gas project, the company established its newest liaison office in Calgary, Alberta.
In this transaction, the Davis team acted for INPEX with a team led by Michael Styczen of the Calgary office and included Andrew Lloyd (Calgary), Danielle Jarvis, Robert Banno, Brian Tsuji (Vancouver), Catherine Pawluch (Toronto), Tony McArthur (Tokyo), and Matthew Pollock (Articled Student). Davis LLP has assisted Japanese companies seeking to expand their businesses in Canada for more than 50 years.
The deal reflects Japan’s interest in securing alternative energy resources. INPEX Gas British Columbia Ltd., jointly established by INPEX and JGC Corp., now owns 40 percent interest in the assets, located in the Horn River, Cordova and Liard basins of northeast B.C., and Nexen holds 60 percent.
The newly-formed partnership will continue with expanding in-field facilities and increasing the company's current production capacity. They have also agreed to jointly investigate the feasibility of LNG export opportunities.
P. Anthony (Tony) McArthur
Michael Styczen, P.Eng