In the upstream oil and gas sector, we have assets in Azerbaijan, Russia (Sakhalin), the North Sea and elsewhere. We hold a 3.65% interest in the ACG oil fields in the Caspian Sea in Azerbaijan and average daily production from the fields in 2017 was approximately 588,000 barrels. In addition, through our equity investment in Sakhalin Oil and Gas Development Co., we are participating in the Sakhalin I Project, an oil and gas development project in Sakhalin, where we have been proceeding with commercial production of crude oil and natural gas since 2005 as the supply source closest to Japan. We aim at increasing our equity production by means of expanding profitable existing assets or acquiring prime assets.
With regard to the development of natural gas, we are participating in LNG projects in Qatar and Oman, and demand for LNG is expected to grow furthermore in the future. Production of LNG in these projects is running well. We are also active in LNG trading, making use of our capabilities as a trading company.
With regard to oil trading, we have active trading business worldwide.
Specifically, we trade crude oil as well as petroleum products globally and also have petroleum product distribution business in some countries together with IPC SINGAPORE as our hub in Asia, IPC Europe in Europe, and IPC USA in North, Central, and South America, respectively. In Japan, we operate domestic businesses related to petroleum products through our affiliate company, ITOCHU ENEX, which is one of the largest Japanese oil wholesalers affiliated with a trading company. Our world-wide handling volume of oil is in the top rank among Japanese trading companies.