Oil Exploration, Development, and Production Activities in Eastern Siberia, Russia
Together with Japan Oil, Gas and Metals National Corporation and INPEX CORPORATION, ITOCHU is participating in oil exploration, development, and production activities in Irkutsk Oblast, Eastern Siberia, Russian Federation. These activities are being conducted through Japan South Sakha Oil Co., Ltd. (JASSOC). The operator for this project is INK-Zapad, a joint venture between Irkutsk Oil Company (INK) and JASSOC. INK-Zapad has moved forward with exploration and appraisal operations. Crude oil reserves sufficient for commercial production were confirmed at the Ichyodinskoye (ICH) oil field, and the field was moved to the production phase in December 2016. The crude oil produced at this field will not only be supplied to the domestic market in Russia but also exported to the Asian market, including Japan. Further discoveries of largescale oil and gas fields are anticipated in Eastern Siberia. In addition to the ICH field, other oil and gas accumulations have also been confirmed in the blocks. Going forward, the project will continue to focus on business expansion. Resource projects are depleting assets, and there is a continuing need for asset augmentation. Accordingly, ITOCHU will continue working to acquire superior projects that contribute to the establishment of a stable earnings base.