Japan's guarantee stock Inpex and Mitsubishi

Posted by Diana Yusuf on Tuesday, May 25, 2010

Japan agreed to provide assurance to the shares of Inpex Corp. and Mitsubishi Corp. in the oil fields of Venezuela after President Hugo Chavez seized the Japanese commodity assets in May last year through a policy of nationalization.

That way, Inpex Corp. and Mitsubishi Corp. is Japan's first joint venture company that secured the country. A key factor in that decision was the involvement of Chevron Corp. as the operator and owner of 34% shares. Kazuhiro Ishikawa, director of group legal aid office of the combined company, said the Nippon Export and Investment Insurance (NEXI) will ensure the two companies combined share of 2.55% in Carabobo-3 project.

Chavez's policy of nationalization of foreign assets do not stop the exploration activities of oil companies in neara it, like Chevron, Repsol YPF SA, Eni SpA and China National Petroleum Corp. in the country. China approved a loan to Venezuela amounted to U.S. $ 20 billion last month and formed a joint effort to encourage the production of the Orinoco, one of a number of locations in the world's largest oil reserves. "Exploration of oil will be more aggressive to a country with increased investment risk, such as Venezuela and countries in Africa in the search for more reserves," said Yasuhiro Narita, Analyst Specializing Japanese Trading Houses Nomura Securities Co..

He said NEXI insurance would improve the investment climate for Japanese companies in Venezuela.

{ 0 comments... read them below or add one }

Post a Comment