Irkutsk Oil Company Signed Framework Agreement with JOGMEC

September 7, 2017

Limited liability company «Irkutsk Oil Company» («INK» LLC) and Japan Oil, Gas and Metals National Corporation (JOGMEC) signed Framework Agreement on the 7 of September in Vladivostok at venue of Eastern Economic Forum. The document established fundamental terms of partnership between the parties on their new joint project.
Иркутская нефтяная компания подписала рамочное соглашение с JOGMEC

Framework Agreement is a legally binding document, which formalizes previously achieved arrangements set out in the Memorandum of Understanding (December 2016) and Heads of Agreement (April 2017).

As part of the new joint project INK-Krasnoyarsk Irkutsk Oil Company and JOGMEC will start geological exploration work on five license blocks in Krasnoyarsk Krai. Already in the winter field season of 2017-2018 the parties are planning to start 2D seismic survey on the territory of the blocks. The parties anticipate that the total investments into such blocks for acquisition and exploration works within the period until 2021 (inclusive) will amount to not less than 100 million USD.

New project between Irkutsk Oil Company and JOGMEC is included in the Japan-Russia Action Plan of the Working Group for Cooperation in the Area of Hydrocarbons under the Japan-Russia Energy Initiative Council.

Irkutsk Oil Company and JOGMEC have been working in partnership for more than 10 years already. Their first joint venture (INK-Sever) was founded in 2007. In 2009, parties expanded their partnership by founding the second joint venture (INK-Zapad), which also included Japanese privately-held companies INPEX CORPORATION and ITOCHU Corporation since 2013. During the period of collaboration on common initiatives, more than 50 wells were drilled and four hydrocarbon fields were discovered.

Photo (from the left to the right): Kenji Akiyoshi, Executive Director, Member of the Board, JOGMEC, Keisuke Kuroki,  President, JOGMEC, Nikolay Buynov, Chairman of the Board of Directors, Irkutsk Oil Company, Yuriy Rubin, CFA Deputy CEO, Project Finance & Investments, Irkutsk Oil Company

INK Contributed 6.7 Billion Rubles, in Taxes, to the Irkutsk Region’s Government in the First Half of 2017