Energy
0

US Opposes Japan Drilling Project

US Opposes Japan Drilling Project US Opposes Japan Drilling Project

The United States has objected to a project of a Japanese consortium and Russia’s state-run oil giant Rosneft to drill for oil offshore Russia, Bloomberg reported, citing people familiar with the matter. Japan Oil, Gas and Metals National Corporation, Inpex Corporation and Marubeni Corporation signed in December 2016 the Heads of Agreement with Rosneft to jointly explore in the southwestern offshore area of Sakhalin Island of Russia. The three Japanese companies expect to strengthen Japanese-Russian economic cooperation and diversify Japan’s energy sources, the corporation said at the time. But since then, the US government has objected to the project, basing its intervention over sanctions on the grounds that the US allies within G7 should not “backfill” in projects that US companies would be barred from carrying out, according to Bloomberg’s sources. Japan’s position is that this project is not “backfilling” because the Japanese companies were not competing with US firms for the project, according to one of the sources.

 

Add new comment

Read our comment policy before posting your viewpoints

Financialtribune.com