Inpex leaves from W. Natuna

Inpex leaves from W. Natuna

TOKYO (Dow Jones): Indonesia Petroleum Ltd., or Inpex, a leading Japanese energy developer, has withdrawn from an oil and gas exploration project offshore southern Indonesia, Japan National Oil Corp. said Wednesday.

JNOC has a 50 percent interest in Inpex's exploration unit for the West Natuna project and approved Inpex's withdrawal from the project in late April.

In 1991, Inpex acquired a 25 percent stake in the West Natuna concession, which is shared with other international partners, including Gulf, Canadian Occidental Petroleum and Total SA (TOT) of France.

A minimal amount of gas has been discovered at the West Natuna concession block following five test drillings that the four international partners conducted from 1992 through 1998.

Inpex decided to abandon the project as its viability was undermined by lower-than-expected potential oil and gas reserves, JNOC said.