Shearman & Sterling advised Japan Bank for International Cooperation ("JBIC") in the approximately US$90 million equity investment for a 30% stake in JX Nippon Oil Exploration (EOR) Limited (“JX EOR”). JBIC’s investment is made in connection with JX EOR's participation in the approximately US$1 billion cogeneration, carbon capture sequestration and enhanced oil recovery project in the West Ranch oil field in Texas with NRG Energy Inc., which was announced in July 2014.
JBIC is a policy-based financial institution wholly owned by the Japanese government. Its mission includes promoting overseas development and interest acquisition of important resources by Japanese companies by drawing on its various financial facilities and capabilities, including equity participation.
JX NOEX is the upstream operating arm of JX Holdings Inc., a Japanese petroleum & metals conglomerate headquartered in Tokyo, which explores for and develops oil, natural gas and other mineral resources, and extracts, processes, stores, sells and transports petroleum, natural gas and other mineral resources and their secondary products.
The Shearman & Sterling team included partners Etienne Gelencsér (Tokyo-Project Development & Finance) and Kenneth Lebrun (Tokyo-Mergers & Acquisitions) and associate Yasuhiro Izushima (Singapore-Project Development & Finance). Other lawyers on this transaction included partner Robert Freedman (New York-Project Development & Finance) and associates Jeffery Kalikow (San Francisco-Project Development & Finance), Nathaniel Rowe (Tokyo-Project Development & Finance) and Yohei Nakagawa (Tokyo-Capital Markets).